What are company objections?
This refers to problems faced by investors dealing in physical shares. An investor sends the certificate along with the transfer deed to the company for registration. In certain cases the registration is rejected because of signature difference, or if the shares are fake, forged, or stolen, or if there is a court injunction preventing the transfer of the shares etc. In such cases, the company returns the shares along with a letter, which is termed as an objection memo. All such cases are identified as company objections.
After buying the shares, the investor sends the certificate along with the transfer deed to the company for transfer and registration in his name. In certain cases, the registration is rejected by the company for such reasons as signature difference or fake/forged/stolen shares or court injunction preventing transfer. In such cases, the company may return the share certificate and the transfer deed along with a letter termed `Objection Memo’. All such cases are identified as Company Objections. What is a Stop Transfer case? This is the process whereby the transfer of shares is stopped by the company under grounds provided for in the Companies Act, 1956. The stop transfer is generally affected by the company on the strength of a copy of FIR or court order when some securities are reported missing/lost/stolen by the holder of the securities. What should one do with shares returned by the company as company objections? What is the time frame for reporting company objections? One should su
A list documenting reasons by a company for not transferring a share in the name of an investor is called company objections. Rejection occurs due to a signature difference, or fake shares, or forgery, or if there is a court injunction preventing the transfer of the shares. What should one do with company objections? The broker must immediately be notified. Company objection cases should be reported within 12 months from the date of issue of the memo for the original quantity of share under objection. Who has to replace the shares in case of company objections? The member who has sold the shares first on the Exchange is responsible for replacing the shares within 21 days of the Exchange being informed. Company objection cases that are not rectified or replaced are normally auctioned. How does transfer of physical shares take place? After a sale, the share certificate along with a proper transfer deed duly stamped and complete in all respects is sent to the company for transfer in the n
