Reliance pleads for more time to dispatch bonus shares
Nalini D'Souza
MUMBAI, January 18: Reliance Industries Ltd (RIL) has sought more time from the Bombay Stock Exchange (BSE) to despatch bonus shares to its shareholders. RIL has already written to the BSE seeking an extension of the despatch date to January 31. BSE has agreed to the company's request, but wants it to provide a status report on the despatch of bonus shares from January 17 on a weekly basis.The letter written to BSE on January 9 requests an extension owing to the additional time needed by Karvy Consultants, the company's registrars, to complete the job. Reliance has attributed the delay to the voluminous nature of the job, which needs processing of over five lakh transfer deeds. It has introduced two changes in the share certificates which would prominently include the removal of record key numbers. The key numbers had added to the controversy surrounding the share-switch issue. Record key numbers are the unique numbers marked on every share certificate, which enables the company to locate the history of
the transaction. A special feature of the new share certificate will be the re-introduction of the concept of reverse endorsement of share certificates on transfer. This will be done by affixing a sticker on the reverse side of the share certificate as is customary. After a gap of over 14 years, Reliance Industries announced a liberal bonus issue in the ratio of 1:1 at its EGM held on October 16, 1997. The book closure for the issue was declared for the period between November 29 and December 6, 1997. The company is expected to despatch the bonus shares within 30-45 days of the record date. Another 15 days is kept in store for the actual delivery of shares to the shareholders. As per the exchange's listing regulations, once the despatch of the shares is completed, the company is required to submit a `despatch certificate', issued by the registrar, to the exchange. Only after receiving such a certificate is the exchange allowed to give a go-ahead for listing the said shares. It is also learnt that
along with the application for extension, the company has also applied for the listing of the bonus shares on the exchange. Sources said though Reliance had applied for an extension up to January 31, it had requested for another extension of 10 days, that is, up to February 10. The exchange, however, seems to have turned down the request and will consider it only at the end of the official extension period, said the source. The BSE and Reliance also seem to differ on the issue of exchanging old shares held by the shareholders of the company for new share certificates. The exchange maintains this should be an on-going exercise and the bourse by way of across-the-counter facility should be offered by the company. However, the BSE maintains the first priority should be given to despatching the bonus shares. The area of dispute is over the shares which comes under no-objection. ``Once such shares, which arise under no-objection are sent for transfer and new shares are issued to replace the same,
handling the objection cases becomes difficult,'' said an official at Karvy Consultants.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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