Background: Mr. and Mrs. Sharma, a married couple, were the original shareholders of shares in Reliance Industries Ltd. Unfortunately, both passed away, leaving behind four legal heirs – two sons and two daughters. The market value of the shares at the time of applying for transmission was below Rs. 5 Lakhs. The original share certificates were untraceable, and bonus shares issued in 2009 and 2017 were not received due to changes in the shareholders’ residence.
Key Points:
1. Legal Heirs and Claimant:
- Four legal heirs identified: 2 sons and 2 daughters.
- All shares to be transmitted in favor of one of the daughters (the claimant).
2. Documents Required for Transmission:
- Death certificates of both original shareholders.
- Legal Heir Certificate issued by the local magistrate, listing names of all 4 legal heirs.
- No objection from all legal heirs in favor of the claimant.
- KYC forms and documents of all legal heirs.
- Notarized Indemnity Bonds & Affidavits signed by all legal heirs.
3. Challenges for Foreign Legal Heirs:
- Two sons were settled abroad (US citizens).
- Affidavits & Indemnity Bonds couldn’t be provided on Indian Stamp Paper or notarized in India unless the sons were in India during notarization.
- Sons had to get the documents attested from the Indian Consulate/Embassy.
4. Document Submission:
- All required documents prepared and sent to the Registrar, M/s KFintech, through courier by the claimant.
5. Processing Time:
- Approximately 14-15 weeks for the complete processing of documents by KFintech.
6. Confirmation and Ownership:
- The claimant received a “Letter of Confirmation” from KFintech after the successful completion of the transmission process.
- The letter certified that the claimant is now the owner of all the shares of Reliance Industries Ltd. originally held by her parents.
7. Dematerialization Process::
- The claimant had 120 days to submit the “Letter of Confirmation” to her Depository Participant (DP) for the dematerialization of the shares.
Conclusion: This case highlights the procedural intricacies and challenges associated with the transmission of shares after the death of both shareholders, especially when dealing with legal heirs residing abroad. The successful resolution of the case emphasizes the importance of thorough documentation, adherence to legal requirements, and collaboration with relevant authorities and entities involved in the transmission process.
