Obtaining share certificate
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Obtaining share certificate
The process for obtaining a share certificate varies by country and company.
1. Electronic shares: In most cases, shares are held electronically, and you may not receive a physical certificate. Instead, your ownership is recorded through the brokerage and/or a central depository system. The broker or custodian will provide you with an electronic statement or confirmation of your holdings.
2. Physical certificate: Some companies or jurisdictions still issue physical share certificates. If this is the case, you would need to request a physical certificate from the company’s registrar or transfer agent. Be aware that some companies have moved entirely to digital records, and obtaining a physical certificate may not be an option.
3. ADR/GDR shares: If you are investing in a foreign company via ADRs or GDRs, the custodian bank that manages the ADR/GDR program will typically issue and maintain the shares for you. You'll receive confirmation via your brokerage, and you won’t usually need a physical certificate unless specifically requested.
If you're a shareholder of a foreign company and want to obtain a share certificate, the process depends on several factors, including the company's policies, the country where it's based, and how the shares are held (i.e., physical vs. electronic shares). Here’s how you can go about it:
1. Check the Company’s Policy
Contact the Company’s Registrar: For companies that issue physical certificates, the first step is to contact the company’s registrar or transfer agent. This is often done through the company’s investor relations department.
Issuer's Website: Some companies allow shareholders to request a physical certificate directly via their website or investor portal. There may be a form or online request system to submit.
Depository System: If the shares are held electronically, you likely won’t get a physical certificate unless the company allows for a paper option upon request.
2. Contact Your Broker or Custodian (For Electronic Shares)
Broker Holding ADRs: If you are investing in a foreign company through American Depository Receipts (ADRs), your shares are likely held by a custodian bank (like JPMorgan or Bank of New York Mellon). You would need to contact your broker to inquire if they can provide you with a physical share certificate or a more formal statement of ownership.
Direct Registration System (DRS): If you hold shares via DRS (which allows you to register your shares directly in your name without a broker), you may be able to request a physical certificate. Again, you’ll need to reach out to the company’s registrar to see if this option is available.
3. Global Shareholding and Regulatory Considerations
Tax and Regulatory Compliance: Some countries, like the U.S., have strict rules about how foreign investors hold shares. For example, U.S. investors holding shares in foreign companies often do so via ADRs (American Depository Receipts), and the physical certificate may not be available. Similarly, some countries have restrictions on issuing physical share certificates to foreign shareholders.
Holding Through a Broker: If you bought the shares through a broker, the shares might be held in the broker’s name rather than yours. In such cases, the broker will likely provide you with a statement of ownership instead of a physical certificate. You may need to contact the broker or custodian directly to inquire about receiving a physical certificate.
Summary of Steps:
1. Check the company's policy on issuing share certificates (physical or electronic).
2. Contact the registrar, transfer agent, or investor relations of the company for instructions on obtaining a physical certificate.
3. If you hold shares electronically (e.g., through ADRs or a broker), contact your broker or custodian to inquire about obtaining a physical certificate.
4. Submit a request and pay any applicable fees for the certificate.
5. Wait for processing and delivery of the certificate.
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FAQs
A share certificate is a document issued by a company to certify that an individual or entity is a shareholder in the company. It represents ownership of a specific number of shares in the company. This is more common with physical shares, while many modern systems use electronic records.
Yes, it is possible, but it depends on the company’s policies and the jurisdiction. Many companies have moved to electronic shareholding (via a central depository system), so physical certificates are rare. However, you can still request one in some cases, either directly from the company’s registrar or through your broker.