Investors Desk

Frequently asked questions (FAQs)

Frequently asked questions (FAQs)

Kindly note that equity shares of the Precision Electronics Ltd. are under compulsory Demat category & hence shareholders
holding shares in physical form must dematerialize their physical holdings at the earliest.

Can you please tell me what is Dematerialization of shares and what are its benefits?

Dematerialization is the process through which the shares are held and traded in electronic form instead of physical form thus eliminating many disadvantages of shares in physical form.

Following are some of the advantages of demat holding of shares:

  • Easy and speedy execution of sale, purchase, etc
  • Speedy allotment/ credit in case of Bonus/ Right Issues etc.
  • No chances of share/securities certificates being lost, stolen or mutilated and no risk of holding forged certificates.
  • Minimal paper work compared to physical shares.
  • No stamp duty for transfer
  • No risk of bad delivery


Q1. How will I demat my shares?

The first thing you should do is to approach a Depository Participant {DP} as per your choice and open a demat account for which you will be allotted a Client ID. You should, then, surrender the share certificates to your DP by filling the Dematerialization Request Form {DRF} after which the DP generates a number known as Demat Request Number (DRN). Thereafter DP will arrange to get the certificate along with the DRF sent to the Registrar. The Registrar after verification, confirms the DRN and upon confirmation, the number of securities dematerialized are credited in electronic form to the respective demat account. This process is known as de-materialization. You can always reverse this process if you so desire and get your shares reconverted into paper form. This process is known as re-materialization.

Q2. How will I deal with shares held in demat form?

Sale/ purchase of Shares etc in demat form can be effected in easy and speedy way. Sale/ purchase through the Stock Exchange has to be carried through a registered broker. After the sale is confirmed by the broker the seller is required to give debit instruction to his DP for debiting the number of shares sold, by filling the Delivery Instruction (DIB). In case of purchase of securities, after the payout, the broker will ask his DP to debit his account and credit the Client account of the purchaser with the number of shares purchased.

Q3. What are the expenses involved?

The expenses are for dematerialization/ holding demat account, transaction charges for sale/ purchase etc. These charges differ from one DP to another. The charges of the DP with which you hold your account are to be paid by you by debiting your designated bank account.

Q4. How do I get my benefits from the Company for the demat shares held by me and what are my rights?

The Registrar as on a record date/ book closure, every year, downloads data of beneficiaries holding shares of the Company in demat form. On the basis of this data the Company will send to you the notice of the Annual General meeting, Annual Report and make available to you corporate benefits like dividend/ right/ bonus etc. Please note that the rights of the shareholders holding shares in demat form are same as that of the shares held in physical form.

Q5. Can you let me know whom should I contact for queries relating to my demat account?

Your demat account is maintained by the DP and therefore any communication/ intimation/ queries relating to change of address, change in bank account details, registration of nominees, demat account etc may please be addressed to your DP. Please note that the Company/ Registrar has no access to your depository account and hence any request with regard to any of the above subjects cannot be considered

Q1. How do I get the Precision Electronics Shares transferred?

Please properly execute and complete the share transfer deed/s, affix the proper stamp duty, send the transfer deed/s along with the share certificate(s) to the Share Transfer Agent, M/s Skyline Financial Services Pvt. Ltd. or to the Company Secretary at the Registered Office of the Company.

Q2. What is the share stamp duty payable on transfer of shares which I have purchased?

Presently, the stamp duty payable is 25 paise for every hundred rupees or part thereof of the market value of shares as on the date of execution of the share transfer deed.

Q3. I hold shares in two or more folios. Can I consolidate the folios?

It is very desirable to get the folios consolidated by the Company. But please note that in case of joint holdings, the names and their order should be identical in all the folios. A letter under the signature of all the holders will be sufficient and no share transfer deed is required to be executed

Q4. I hold shares jointly. Can I change the order of names?

It is possible to do that just through a letter under the signature of all the holders and no share transfer deed is required to be executed. Please keep in view that your signatures should tally with our record.

Q5. I wish to add another joint-holder to my shareholding. What do I do?

In this case there has to be a transfer of shares. You will have to sign a share transfer deed as transferor and again as transferee along with the person/s who will be the joint holder/s. The transfer deed, duly completed, with the share certificate/s will have to be lodged with the Registrar or the Company as in the case of transfer.

Q6. What will I do when I have purchased the Shares but the Company has raised an objection and not registered the shares in my name?

Please see the objection letter of the Company carefully and remove the problem immediately. In case of difficulty please contact the Registrar or the Company

Q7. What happens if my residential status changes before the transfer?

Please write to the Company immediately for further advice.

Q1. I hold shares jointly. What will happen in the event of the death of one of the shareholders?

This is the Deletion of shares. Please write to the Registrar or the Company along with a certified copy of the Death Certificate and the share certificates. We shall delete the name of the deceased shareholder and return the share certificate(s) duly endorsed in favour of the remaining shareholder(s).

Q2. If a shareholder dies who was holding shares in his sole name and there is no “will”, how can his legal heir/s get the shares transmitted in his/ their name/s? If there is a “will” or other succession documents, what should be done?

In the first case, this is the Transmission of Shares without a succession document, and the legal heir has to prove his status as such and his right to the shares through legal succession. In the second case, the Transmission will be based on the succession document like “will” etc. Please write to the Registrar or the Company along with the death certificate and also the “will”/other succession documents, where it exists, to enable us to advise you suitably.

Q1. How do I make a nomination in respect of my shareholding?

You have to submit to us a legally prescribed nomination form in duplicate, duly filled and signed. If the shares are held in joint names all the holders must sign the nomination form. Please write to us to enable us to send the form. The share certificates need not be sent.

Q2. Can I change a nomination?

Yes. Please furnish to us a fresh nomination which will cancel the earlier nomination. Please note that if joint holders make the nomination, and one of the joint holders dies, the remaining joint holder/s can make a fresh nomination.

Q3. On the death of the shareholder, how can the nominee get the shares registered in his name?

The nominee has to write to us along with a copy of the death certificate and nomination form registered with the Company to enable us to advise further.

Q4. I have shares in the demat form. What do I do for making a nomination?

Please approach your Depository Participant. Kindly note that in the account opening form provided by the DP there is a provision for providing the name of the nominee.

Q1. What should I do if I have lost/ misplaced my share certificates? How do I get a duplicate share certificate?

Please write to the Registrar or the Company immediately about the loss of share certificates quoting your folio number and details of share certificates. Simultaneously, you will have to lodge a complaint with the police regarding the loss of share certificates and send us a copy of the FIR. We will advise you of further steps that you will have to take.

Q2. What should I do where my share certificates have got torn/ cages on the reverse have been filled up/ worn out etc. How do I get a duplicate share certificate?

Please write to us and send the concerned share certificate to us.

Q1. If there is a change in my address what should I do?

Please send a request letter to the Registrar or the Company, duly signed by you which should tally with our record, giving the new address as well as the old address. PIN no should invariably be given. In case of joint shareholders, all should sign the request letter.