A Chandigarh-based X user, Rattan Dhillon, who shared pictures of two share certificates he recently discovered at home, said that he has decided not to proceed with digitizing the shares as the process is lengthy. The certificates, which were issued by Mukesh Ambani-led Reliance Industries Limited, were granted in February 1987 and December 1992 for 20 and 10 shares, respectively.
The X user, who describes himself as a rally driver and auto enthusiast, noted that the transfer process is excessively time-consuming. He emphasized the lengthy period required for obtaining the legal heir certificate, stating that it can take anywhere from 6 to 8 months.
"Final Update: It seems Dhirubhai Ambani’s signatures will go to waste, as I’ve decided not to proceed with digitizing the shares. The process is just too lengthy—obtaining the legal heir certificate alone takes 6-8 months, and the IEPFA process reportedly takes 2-3 years. I don’t see the value in investing so much time. India really needs to streamline its paperwork. For now, I’ll simply keep the physical share certificates," Dhillon wrote on Thursday.
Current value of these certificates
As per estimates, after three splits and two bonuses since 1992, the 30 shares should now be equal to 960 shares, subject to verification of ownership or transfer. Based on the closing price of Reliance Industries' shares on Wednesday, the man's shares are now valued at over Rs 12 lakh.
Demat process
The process of converting physical shares into a digital format is referred to as dematerialization. In 2019, the Securities and Exchange Board of India (SEBI) made it mandatory for shares to be traded in electronic form in the stock market. This does not mean that ownership of physical shares is prohibited, only that they cannot be traded. SEBI implemented this rule to streamline the process of buying, selling, or transferring shares.
Transfer of shares
The Investor Education and Protection Fund Authority (IEPFA) of the government informed Dhillon that his shares could have been transferred to IEPF if they were left unclaimed for a specific duration. Dhillon, along with other investors, has the option to confirm this by accessing the new Search Facility on the IEPFA website.
To which, Dhillon wrote that he was not familiar with the stock market.
"I wasn’t very familiar with the stock market, and while some misled me, thousands genuinely helped me navigate the process. A big thanks to IEPFA @authorityiepf for guiding me in processing to retrieve my 37-year-old stocks—they were incredibly responsive. Grateful to @nsitharaman Mam for such a great organization. For those asking about the procedure, I highly recommend reaching out to IEPFA; they will guide you better and ensure the work gets done. As I’m donating 50% of these shares, I also want to thank this organization for supporting a good cause," Dhillon wrote.
If the shares have been dormant for more than seven years, there is a possibility that they have been transferred to the Investor Education and Protection Fund (IEPF).
To confirm and retrieve them, the initial step is to ascertain if the shares are still under the ownership of Reliance Industries or have been shifted to IEPF.
This verification process can be conducted by visiting the official website of Reliance Industries or reaching out to their Registrar and Transfer Agent (RTA), KFin Technologies Limited. For this, one has to provide the share certificate number and shareholder particulars for further assistance.
If the shares are held by Reliance or have been transferred to IEPF, the next course of action is to collect important documents.
These documents should include the original share certificate, PAN card, Aadhaar card, proof of address, bank details (such as a cancelled cheque), and Demat account information if applicable.
In cases where the claimant is a legal heir or nominee, additional documentation such as a succession certificate, probate, or will may be necessary to confirm their entitlement.
Once the necessary documents are prepared, the claimant should submit Form IEPF-5 on the Ministry of Corporate Affairs (MCA) portal, along with all required supporting materials.
Upon online submission, a copy of the form and attachments must be forwarded to either Reliance Industries' IEPF Nodal Officer or KFin Technologies Limited for authentication.
The company will review the claim and provide a report to IEPF authorities. If the claim is deemed valid by IEPF, the shares will be transferred to the claimant’s Demat account or reissued in physical form, as requested.
One should note that legal heirs must complete the transmission process with Reliance Industries before initiating a claim with IEPF.