The National Stock Exchanges Committee on Settlement Issues (Cosi) feels that there should not be any mark up on deleted securities. The closing out price for deleted securities (merger/amalgamation/call money payment) currently is carried out at 20 per cent over the official closing price.
Even though no opportunity is afforded to the introducing member for rectification of shares, the close out is being done with a mark up of 20 per cent.
The Cosi, which met here on Saturday, took stock of numerous key issues including the requirement of delivery slips and delivery details statement for reporting company objections, the stamp duty on bonus/rights shares submitted as rectified corporate benefits and the pending corporate benefit cycle announced by the Clearing Corp-oration. Withdrawal of objections by members on account of wrong stamp, problems arising as a result of no proper mention of the folio no. on the reverse of the share certificate and corrections/overwriting for more than two characters on the transfer deeds were some of the other issues discussed at the meeting.
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The committee feels that in cases of loss of delivery slips and details statement, the members could furnish an indemnity bond which will be issued by the NSE.
Though various representations have been made stating that the introducing member should also forward the stamp charges payable for transfer of the bonus/rights shares in case of members submitting bonus/ rights shares as corporate benefit, Cosi members feel that the receiving member or his client should continue to bear the stamp duty charges for such shares.
Earlier, it was decided that the clearing corporation would announce a pending corporate benefit cycle once in a quarter to facilitate members who have failed to claim the same at the time of reporting company objections. A charge would be payable by the receiving members making such claims. However, the committee feels that the receiving members making such claims should not be charged.
Discrepancies like claims, complaints, queries, clarification, discrepancies between members, the committee feels, should be reported within three months.
COSI accepted members suggestions on handling disputes at regional (Dispute Resolution Committee) in cases where both members who are parties to the dispute (company objection and auction cases) are from the same centre.
On the withdrawal of objections by members on account of wrong stamp, it has been decided that members who have actually introduced the shares after all the fake stamps should be penalised for the fake stamps appearing on the reverse of the transfer deed.
The committee shot down members suggestions of the introduction of a mechanism of affixing transparent cello-tapes on the material portion required to be filled up by the seller and treat such deliveries as good delivery.