Ref : E&R/Press/2004/Shares.37/JSD-DG

CERC Helps Recover Shares Worth Rs. 4,29,000

Kokilaben Gandhi, 63, and her husband Chandrakantbhai Gandhi, 73, were jointly holding shares worth Rs. 4,29,000 in the dematerialised account with Integrated Enterprises India Limited.

The shares comprised 1280 of Colgate, 120 of Smithkline, 192 of Asian Paints and 150 of Telco. All these shares were transferred without their consent, signature or payment from her Demat Account in 1999.

The dispute prolonged for five years between Kokilaben and the Depository Participant (DP).

During the intervening period Bonus Shares were issued by Smithkline and Asian Paints in the ratio of 1 : 1 but Kokilaben did not receive the dividends declared by the companies. She approached Consumer Education and Research Centre (CERC), Ahmedabad. Prof. Manubhai Shah, Chairman Emeritus of CERC, with the help of the Securities and Exchange Board of India (SEBI), held a meeting with the officials of the DP in Mumbai. Officials of the DP again had a meeting with CERC and the investors on 12 June 2004.

Finally, at a meeting on 10 August 2004, the DP agreed to credit 75 per cent of all the shares, including Bonus Shares, to Kokilaben’s Demat Account. A cheque for Rs 44,630 towards the dividend was also handed over to Kokilaben at CERC’s office on that day.

Kokilaben and Chandrakantbhai signed the final agreement and assured the DP of no further legal action in the matter.

CERC helped to solve the matter without going to the court.

 

Date : 12/08/2004
Place : Ahmedabad

Pritee Shah
Editor
INSIGHT - The Consumer Magazine

 

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CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Sarkhej-Gandhinagar Highway, Ahmedabad- 380 054 (INDIA)
Phone: 079-27489945-46 Fax: 079-27489947
E-mail: cerc@wilnetonline.net
Web Site: http://www.cercindia.org
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