Transfer Deed Tampering Rears Its Head On Nse

Rule 9 in the new Sebi good and bad delivery norms, aimed at curbing bad deliveries, is being misused by some of the exchange members to tamper with the transfer deed and force bad deliveries on the market.

Some members raised the matter at a recently held meeting of Association of NSE Members of India (ANMI).

According to them, there have been cases where transfer deeds attached to deliveries have been tinkered with either in auction pay-out and after the company objection rectification to force a close-out of the transaction.

Rule 9 says that a delivery will be considered bad if transfer deeds are without the name of the company, transferor, folio number, share certificate number, and if it does not specify the number of shares.

 

Brokers say that earlier, they filled in only the seller's name, signature and the company name.

My client filled the transfer deed in my presence, and there was no mistake. However, when the company objection rectification came back as bad delivery, some parts of the transfer deeds had been overwritten,