Market Watch, NEPSE What ?, Stock News

OT, Name Transfer, Matching after IPO

Published by Octron on July 30, 2009

As more and more people are attracted to IPO these days, there is lesser probability of getting allotted due to heavy oversubscription. In order to increase the probability, people have started filling up more than one form in the name of family members and friends. That ironically leads to heavy oversubscription, which means once again their probability of getting alloted decreases. Pretty Funny!
If you still don’t get allotted despite filling of number of forms, then please read our featured article Tips to apply for an IPO.

Now let’s assume one of your applications got allotted for some IPO and incidentally that was the one which you filled up in the name of your family members or friends. Obviously, you would want those shares to be transferred as soon as possible in your name, after all you were the one who invested money and went through all those hassles of standing in the long queue to submit it.

Now there are few approaches to that you can do that;

1. Through Securities Board, you can apply for Transfer of Name (Namshari), if the shareholder is your immediate family member (i.e. (Grand) Father, (Grand) Mother, Son, Daughter, Brother, Sister). You will need to pay nominal charge (~Rs 30) for the transfer process and will take anywhere from 15 days to months depending upon the company’s overflow fashion.

2. Through Broker’s Office matching. This one is the most popular form of share transfer. Once the share gets listed in the secondary market, you can go to the broker office along with the lucky shareholder and ask for the matching. The matching is actually the simulation of real transaction, where both the buyer and seller will be the same Broker. You will have to pay all usual taxes and brokerage charge to the broker apart from Transfer of Name Charge.

3. The above approach is suitable, only if you intend to withhold the shares for long time. If you are after those future right and bonus shares, then you should begin the process as soon as the shares get listed on the secondary market. But, if you intend to sell off those shares, in the secondary market as soon as it gets listed then, its better not to do the transfer and spend extra bucks.

All you have to do is get the signature verified of the shareholder (who got alloted) at the company office. After that, you need No Objection Letter (Manjurinama) from the same shareholder making you the authorized person for the share sale in the written form. Once you get those, you can visit to any Broker‘s Office (if you don’t know one, click here for list of authorized brokers with their respective address & phone numbers). At Broker’s office you will need to fill up sale transaction form and submit it to the Broker along with the share certificate for the sale.

The same process can be applied for the shares which you buy from your friends, family or any other person before it gets listed on the secondary market. You can follow No. 2 or No. 3 approach.

Readers Rating: