CHENNAI, May 26: Blank transfer has become a major impediment to the smooth flow of the transfer process, R Chandrasekaran, chairman of the Chandrasekaran Committee, which recently submitted its draft report on share transfer and allotments, said.

As a result of the blank transfer system, most investors despatch documents for transfer at the time of book closures. Share transfer agents (STAs), unable to cope up with the work-load, delay the transfer. Blank transfers are also taken advantage of by undesirable elements for introducing stolen and fake shares, Chandrasekaran said.

He said in India it was not possible in the current scenario to eliminate blank transfer as it would push up transaction costs and also create liquidity problems. But if stamp duty on transfer were replaced with some other form of revenue, he said blank transfer could be done away with.

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