How do I make a nomination with regard to my shareholding?
You have to submit a 'Nomination Form' duly filled in duplicate and signed. If you are holding shares along with other holders then all the holders will have to sign the nomination form.
After the form is received by the company's registrar and share transfer agent, and if found in order, a registration number will be allotted to the nomination. A duplicate copy of the nomination form received from you will then be returned back to you with an endorsement indicating the registration number and date.
Nomination can be made only in respect of shares held in physical form. In case of dematted shares, your nomination has to be recorded with your Depository Participant.
Only one nomination can be made for each folio. Folios having different order or combination of names of shareholders will require separate nominations.
Do I have to send my share certificates along with the nomination form?
My shares are held in joint names. Are the joint holders nominees to the shares?
No, joint holders are not nominees. They are joint holders of the relevant shares having joint rights on the same. In the event of death of any one of the joint holders, the surviving joint holder/s of the shares is/are the only person/persons recognized by the company as the holders of the shares.
Can a nomination once made be changed?
A shareholder can revoke nomination once made by submitting a fresh nomination. If joint-holders and one of the joint-holders dies make the nomination, the remaining joint holder/s can make a fresh nomination by revoking existing nomination.
What is the legal position of the nominee in case of death of the shareholders?
Upon the death of a shareholder, the Nominee, to the exclusion of any other legal heir/beneficiary, is the only person in whom the shares vest. In other words, in case of a valid nomination, the company will not entertain any claim from legal heirs or beneficiaries and the shares will be transmitted only in favor of the Nominee.
In case if the nomination is made by joint-holders, the nomination will come into play only upon the death of all the joint holders. Therefore if one of the joint shareholders dies, the shares will devolve on the surviving shareholders to the exclusion of the Nominee. In this case the surviving shareholders may make a fresh nomination if they so desire.
What is the procedure for the nominee to get the shares in his name?
Upon death of a shareholder, the nominee is entitled to have the shares transmitted in his favor. He/She will have to give a notice in writing to this effect along with the share certificate(s) of the deceased shareholders. Alternatively, the nominee can transfer the shares held by the deceased shareholder, to a third party.
If a nominee opts for registration of shares in his name, he is required to produce proof of identity, e.g., copy of passport, driving license, voter's identity card or such other proof to the satisfaction of the company. The nominee should also submit his specimen signature duly attested along with a request for transfer.
Upon scrutiny of the documents submitted by the nominee, shares will be transmitted in his favor and share certificates returned to him duly endorsed.
Can the nominee sell the shares without registration in his favor? What is the procedure?
Yes, a nominee can sell the shares to a third party, without registration of shares in his favor. However, the usual procedure for transfer of shares will have to be followed.
I have shares in the demat form. Can I send the nomination form to the company for making a nomination with respect to my shareholding?
For making a nomination with respect to dematted shares, you will have to approach your DP. In the account opening form provided by the Depository Participants there is a provision for providing the name of the nominee. Please consult your Depository Participant for further details.