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Clause 5 and 5A of the Listing Agreement for Equity Shares

Clause 5 of the Listing Agreement for Equity Shares is as under:

When documents are lodged for sub-division, consolidation or renewal through the Clearing House of the Exchange, the Company agrees - - -

(a) that it will accept the discharge of an official of the Stock Exchange Clearing House on the Company’s Split, Consolidation and Renewal Receipts as good and sufficient without insisting on the discharge of the registered holders;

(b) that when the Company is unable to issue certificates or Split, Consolidation or Renewal Receipts immediately on lodgment, it will verify whether the discharge of the registered holders on the documents lodged for sub-division, consolidation or renewal and their signature on the relative transfers are in order.

Clause 5A of the Listing Agreement for Equity Shares is as under:


I. For shares issued pursuant to the public issues or any other issue which remain unclaimed and are lying in the escrow account, the issuer agrees to comply with the following procedure:
(a) The registrar to the issue shall send at least three reminders at the address given in the application form as well as captured in depository’s database asking for the correct particulars. If no response is received, the unclaimed shares shall be credited to a demat suspense account with one of the Depository Participants, opened by the issuer for this purpose.
(b) Any corporate benefits in terms of securities accruing on such shares viz. bonus shares, split etc., shall also be credited to such demat suspense account.
(c) The issuer shall maintain details of shareholding of each individual allottee whose shares are credited to such suspense account.
(d) As and when the allottee approaches the issuer, the issuer shall credit the shares lying in the suspense account to the demat account of the allottee to the extent of the allottee’s entitlement after proper verification of the identity of the allottee.
(e) The suspense account shall be held by the issuer purely on behalf of the allottees who are entitled for the shares and the shares held in such suspense account shall not be transferred in any manner whatsoever except for the purpose of allotting the shares to the allottee as and when he/she approaches the issuer. (f) The voting rights on such shares shall remain frozen till the rightful owner claims the shares.
(g) The issuer shall disclose the following details in its Annual Report, as long as there are shares in the suspense account : (i) Aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year; (ii) Number of shareholders who approached issuer for transfer of shares from suspense account during the year; (iii) Number of shareholders to whom shares were transferred from suspense account during the year; (iv) aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year; (v) that the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

II. For shares issued in physical form pursuant to a public issue or any other issue, which remain unclaimed, the company agrees to comply with the following procedure:
(a) The registrar to the issue shall send at least three reminders at the address given in the application form as well as last available address as per company’s/registrar’s record asking for the correct particulars. If no response is received, the company shall transfer all the shares into one folio in the name of “Unclaimed Suspense Account”.
(b) The issuer company shall dematerialise the shares held in the Unclaimed Suspense Account with one of the Depository Participants.
(c) All corporate benefits in terms of securities accruing on such shares viz. bonus shares, split etc. shall also be credited to such Unclaimed Suspense Account.
(d) The voting rights on such shares shall remain frozen till the rightful owner claims the shares.
(e) The Unclaimed Suspense Account shall be held by the company purely on behalf of the allottees who are entitled for the shares and the shares held in such suspense account shall not be transferred in any manner whatsoever except for the purpose of allotting the shares to the allottee as and when he/she approaches the company.
(f) The issuer company shall maintain details of shareholding of each individual allottee whose shares are credited to such Unclaimed Suspense Account.
(g) As and when an allottee approaches the issuer company, the issuer company shall, after proper verification, either credit the shares lying in the Unclaimed Suspense Account to the demat account of the allottee to the extent of the allottee’s entitlement, or deliver the physical certificates after re-materialising the same, depending on what has been opted for by the allottee.
(h) The company shall also disclose the following details in its Annual Report till the time the shares are in the Unclaimed Suspense Account:- (i) Aggregate number of shareholders and the outstanding shares lying in the Unclaimed Suspense Account at the beginning of the year; (ii) Number of shareholders who approached the issuer for transfer of shares from the Unclaimed Suspense Account during the year; (iii) Number of shareholders to whom shares were transferred from the Unclaimed Suspense Account during the year; (iv) Aggregate number of shareholders and the outstanding shares lying in the Unclaimed Suspense Account at the end of the year.”


Post Last Updated On: 28th August 2015
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