Fix Name Mismatch In Share Certificate And Demat Account

The share certificate is a very important document for the shareholder. In case your name mismatch in share certificate and demat account, we’ll explain how to fix it.

What is a Share certificate?

A share certificate is a formal record that confirms the ownership of a certain number of shares in a corporation. It includes details on the shares, including the shareholder’s name, the number of shares they possess, when they were issued, and any other key information. A physical share certificate that may be kept as proof of ownership was typically given to investors when they made a stock or share investment.

What is a Demat Account?

Investors can store and manage their shares in a digital format using a Demat account, which is an electronic account. It makes physical share certificates unnecessary and enables online share trading for investors. Shares purchased by an investor are credited to their Demat account, while shares sold by the investor are deducted from their Demat account. A record of all the shares an investor owns and any transactions that occur in the account are kept in the Demat account.

Documents required to fix Name Mismatch In Share Certificate And Demat Account

You would need to produce specific documentation to the demat account provider or broker to correct a name mismatch on a share certificate. Depending on the provider’s or broker’s particular needs, different documents may be needed, although the following are frequently needed:

1. A duplicate of the share certificate is the actual paper trail of ownership for the shares. To prove your ownership of the shares, you must give a copy of the share certificate to the broker or company that manages your demat account.

2. Identification proof: To prove your identity, you must present a current government-issued document, such as a passport, driver’s license, or Aadhar card.

3. Address verification: To prove your current address, you must present a legitimate document, such as a bank statement, utility bill, or rental agreement.

4. Affidavit: In some circumstances, you could be needed to provide an affidavit explaining the circumstances behind the name conflict and simply referring that the name on the share certificate and the demat account is the same people.

5. Marriage certificate: To verify the name change, you must submit a copy of your marriage certificate if the name match is the result of a name change after marriage.

It is significant to note that the precise documents needed may change depending on the particulars of the name mismatch and the needs of the broker or provider of the demat account. Before beginning the rectification process, confirming the necessary documents with the provider or broker is recommended.

The process to fix the Name Mismatch In Share Certificate And Demat Account

The following actions are normally taken to correct a name discrepancy in a share certificate:

1. Speak with the broker or supplier of the demat account: The first step is to contact your demat account provider or broker to start the repair process if you discover a name discrepancy between your share certificate and demat account.

2. Provide the necessary documentation: Once you’ve contacted the supplier or broker, you’ll normally be requested to present a few pieces of identification and/or proof of the name on the share certificate. A copy of the share certificate, identity and address verification, an affidavit, and a marriage certificate are examples of these documents (if applicable).

3. Once you have obtained the necessary documentation, you must send it to the broker or demat account provider for verification. Usually, the service provider or broker will usually examine the paperwork and check that the person whose name appears on the share certificate and demat account is the same.

4. Wait for verification: Following submitting your documents, you must wait for the broker or demat account provider to check them for accuracy and make the required modifications. Depending on the provider’s or broker’s particular criteria, this process could take a few days or longer.

5. Confirm the correction: The demat account provider or broker should provide you a confirmation after the correction has been completed. You ought to confirm that.

Demat request form

A Demat request form is required to request the opening of a Demat account or make adjustments to an existing Demat account. The investor must give specific personal and financial information, which the broker or demat account provider normally provides.

The following parts are commonly present in the form:

1. Personal information:

The investor must submit their name, address, date of birth, PAN number, and contact information in this part.

2. Bank information:

The investor must submit their bank’s name, account number, and IFSC code in this part.

3. Information about the nominee:

This part enables the investor to name a nominee to receive the securities in the event of the investor’s passing.

4. Details of the investor’s trading account:

If the investor already has a trading account with the service provider or broker, they may enter those details here.

5. Signature and declaration:

The investor must sign this area and state that all the data they gave on the form is true and accurate.

Procedure to publish Gazette notification

The name change notification must now be published in the Indian Gazette with the application, DD, and all other documentation.

It is important that you send the following paperwork to the Department of Publication of Name Change as soon as possible.

Name Change Affidavit (Hard Copy) That Must Be Notarized
The Indian Embassy or Indian High Commission must properly attest your deed if you reside outside India.
News Paper Publication (Hard Copy)
Fill out the name change form according to the format provided.
Employees of the government must file the Deed for Name Change in compliance with M. No. 190016/1/87-Estt., dated 12/03/1987, filed with the Ministry of Home Affairs
Two self-attested passport-sized photos, a demand draft of Rs. 1100 (for majors) and Rs. 1700 (for minors) payable to the Controller of Publications, Delhi
One Self-Sworn Picture ID as Evidence
There must be a certificate signed by the applicant confirming that the information in the hard copy matches the information in the digital copy.

What to do if a name change is rejected in the demat account?

If your request for a name change in your demat account has been rejected, you may need to take additional steps to resolve the issue. Here are some things you can do:

Contact your demat account provider: The first step is to contact your demat account provider and ask them why your name change request was rejected. They should be able to provide you with a reason for the rejection and advise you on what to do next.
Provide additional documentation: Your name change request may require additional documentation depending on the reason for rejection. For example, if the rejection was due to a mismatch in your signature, you may need to provide a copy of your updated signature.
Follow up with the provider: Once you have provided additional documentation, follow up with your demat account provider to ensure your name change request is being processed.
Consider escalating the issue: If your demat account provider can’t resolve the issue or does not respond to your requests, you might want to escalate it to a higher authority. This may involve contacting the Securities and Exchange Board of India (SEBI) or filing a complaint with the National Consumer Disputes Redressal Commission (NCDRC).

Why is name change rejected?

There are several reasons why a request for a name change in a demat account may be rejected. Here are some possible reasons:

Mismatch in the documentation:

If there is a mismatch in the name or other details provided in the documentation submitted for the name change request and the records of the depository participant (DP), the request may be rejected. For example, the request may be rejected if the name on your PAN card or Aadhaar card does not match the name on your demat account.

Signature mismatch:

If there is a mismatch in the signature provided in the name change request and the records of the DP, the request may be rejected. This is to prevent fraud and ensure the security of the demat account.

Incomplete documentation:

If the documentation provided for the name change request is incomplete or insufficient, the request may be rejected. It is important to provide all necessary documentation and ensure it is filled out correctly.

Lack of supporting documentation:

The request may be accepted if the documentation provided for the name change request includes sufficient supporting documentation. For example, if you are changing your name due to marriage or divorce, you may need to provide a copy of your marriage certificate or divorce decree.

Other reasons:

There may be other reasons why a name change request is rejected, such as if the DP is not authorized to make the change, if the request violates any regulations, or if there are other issues with the account.