Companies (Issue of Share Certificates) Rules, 1960
4. Issue of share certificate
(1) When a company issues any capital, no certificate of any share or shares in the company shall be issued except:
( i ) in pursuance of a resolution passed by the Board; and
(ii) on surrender to the company of its letter of allotment or of its fractional coupons of requisite value, save in cases of issues against letters of acceptance or of renunciation, or in cases of issue of bonus shares:
Provided that if the letter of allotment is lost or destroyed, the Board may impose such reasonable terms, if any, as to evidence and indemnity and the payment of out of pocket expenses incurred by the company in investigating evidence, as the Board thinks fit.
(2) No certificate of any share or shares shall be issued either in exchange for those which are sub-divided or consolidated or in replacement of those which are defaced, torn or old, decrepit, worn-out, or where the cages in the reverse for recording transfers have been duly utilized, unless the certificate in lieu of which it is issued is surrendered to the company:
Provided that the company may charge such fee, if any, not exceeding Rs . 2 per certificate issued on splitting or consolidation of share certificates or in replacement of share certificates that are defaced or torn, as the Board thinks fit.
(3) No duplicate share certificate shall be issued in lieu of those that are lost or destroyed, without the prior consent of the Board or without payment of such fees, if any, not exceeding Rs . 2, and on such reasonable terms, if any, as to evidence and indemnity and the payment of out of pocket expenses incurred by the company in investigating evidence, as the Board thinks fit.
2 [(4) The companies listed with OTC Exchange of India, a company registered under section 25 of the Companies Act, 1956, may issue a jumbo share certificate in favor of Custodian and issue counter receipts to every allottee with respect to their holding:
3 [Provided that no counter receipt shall be issued after the 28th February, 1999.]
Explanation.-For purposes of sub-rule (4), "Custodian" means an entity carrying on post trade activities such as, settlement of purchases and sales, information reporting, safe keeping of securities and/or participating in any clearing system for and on behalf of the client to effect deliveries of the securities.]