What if i lost stock certificates

Next, you may need to buy an indemnity bond. Should the certificates be redeemed later, the company and transfer agency will be protected by the indemnity bond. The rates are usually between 1 to 5 percent of the stock certificates' value. Because you are asking for a paper certificate to be issued, you'll be charged a fee. New shares will be issued after your information and payments are verified. It's not necessary to use a broker to sell your stocks; however, if you choose to use one that you do not have an account with, be prepared to pay a sizable fee.

Brokerage firms no longer offer free or low prices to non-clients who only want help selling stock. As always, we strongly recommend that stock certificates be sent and returned via courier service Federal Express, Airborne Express, United Parcel Service, certified mail, etc. Shareholders that authorize Colonial Stock Transfer to begin the replacement process of a lost certificate and subsequently find their certificate will be subject to a recovery-filing fee to reactivate the stock.

In order to recover a lost certificate with Colonial Stock Transfer, shareholders will need to send the applicable fees and a signed letter stating that the certificate was found.

We recommend using the official Stop Release Letter that can be downloaded from this site. Once this letter is received, Colonial will reactivate the certificate and remove the stop previously placed. For more information regarding our lost certificate replacement procedures, please contact us. This is done by the company to prevent any fraud or transfer of shares. The company sends you the procedure on how to issue duplicate share certificate which includes prepare an affidavit, surety and indemnity bond agreement.

The company— in a letter—mentions you how carry out the procedure for issue of duplicate certificates. You will then have to prepare an affidavit, indemnity bond agreement with franking of around Rs. Remember to get the duplicate share certificate, it is essential to provide an indemnity and surety bond.

Upon receipt of these completed documents, you will have to file an FIR first information report with the police listing details of lost share certificates such as the folio no. You now need to publish a general notice in a government gazette declaring the loss of share certificates. The notice should contain the details of shareholder, share certificate numbers and distinctive numbers of shares lost.

The cost of the publication of the general notice is normally borne by the shareholder. In order to replace the physical certificate, the shareholder will need to contact the company's stock transfer agent. The corporation's investor relations department should be able to provide a shareholder with information on how to contact the transfer agent. A transfer agent records the shareholders of a company and how many shares an investor owns, the stock certificate numbers, and the contact information for the stock owner.

If you find an old stock certificate, perhaps in a deceased relative's belongings, and even though the company may no longer exist, it is still worth looking into as the company may have been bought by an existing company and worth a certain amount. Once the transfer agent is notified of the loss, the agent will place a "stop transfer" on the certificate to prevent others from cashing the certificate in if it is found.

The stop-transfer is much like the stop payment that an individual might place on a check at their bank. The transfer agent will also notify appropriate parties to alert them that the certificate has been lost. However, there are some steps that the shareholder must follow. First, the shareholder must describe the loss and any facts surrounding the loss in an affidavit. Second, the shareholder may be required to purchase an indemnity bond.

The purpose of the bond is to protect the corporation and the agent in case the lost certificate is somehow redeemed by another party at a later date. Think of it simply as additional insurance. When the necessary information has been provided and the necessary steps are taken, a new certificate will be issued. Losing a share certificate can be remedied by contacting the company's investor relations department.

This department will inform the shareholder how to contact the transfer agent who can place a stop payment on the shares and reissue a new certificate. The shareholder may have to complete an affidavit and purchase an indemnity bond. However, stock certificates are no longer needed in today's world of electronic communication, and even if an investor loses their certificate, they still own the shares.

Central Securities Depository.