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APPOINTMENT OF COMMON AGENCY FOR SHARE REGISTRY WORK

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In many cases the issuer companies are having an internal department or a division (by whatever name called) for handling of physical share work and an outside agency for handling the work of electronic connectivity. This kind of arrangement is leading to delay in dematerialization, non – reconciliation of share holding due to lack of proper co – ordination among the concerned agencies or departments, which is adversely affecting the interest of the investors. In this regard in year 2002, SEBI directed all the registrars and share transfer agents (RSTA) that: 

1. Maintenance of Record: They shall maintain records of all the shares dematerialized, rematerialized and details of all securities declared to be eligible for dematerialization in the depositories and ensure that dematerialization of shares shall be confirmed only after an in – principle approval of the stock exchanges; 

2. Proper – systems and Procedure: They shall have proper systems and procedures in place to verify that the securities tendered for dematerialization have not been dematerialized earlier;

3. Reconciliation of Records: They shall ascertain, reconcile daily and confirm to the depositories that the total number of shares held in NSDL, CDSL and in the physical form tallies with the admitted, issued and listed capital of the issuer company.

4. Confirmation of Dematerialization: They shall confirm that the dematerialization requests have been processed within 21 days and shall also state the reasons for shares pending confirmation for more than 21 days from the date of request.

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