The Presidents of
FICCI, ASSOCHAM, CII, INDIAN MERCHANTS CHAMBERS &
BOMBAY CHAMBER OF COMMERCE & INDUSTRY
As you must be aware, the Securities and Exchange Board of India (SEBI) introduced last year an additional feature in the application forms in case of public issues made by companies. The applicant is now given the facility to indicate his account number and bank details. The details are mentioned on the refund orders/cheques along with the applicant’s name. This avoids the a possibility of the refund orders being stolen or being illegally misappropriated.
It has been suggested to the Securities and Exchange Board of India that a similar facility could be given by the companies to their shareholders/debenture holders. If the shareholders or debenture holders inform the company of their account number and bank branch details, the dividend warrants/interest payments/redemption money by way of cheques could include details of account number and the concerned banks. This will result in minimising the malpractice’s of theft of dividends/interest warrants. May I request you to take up this matter with the members of your Chamber/Association with a request to them to introduce this procedure in the interest of the investors. We will be grateful for a response from you in this regard.
S. S. NADKARNI