Selling shares by a non IT payer?

Question

My aunty has 1000 SBI shares bought 13 years back. She is a home maker and not liable for any other Income taxes. How these shares can be sold to the Bank or someone else?

Answer 1

If the shares are in physical format (i.e. you are holding the certificates) then you can go for a off market transaction but I think you will have to pay stamp duty for the same... which can be pretty high....

What I suggest is if she has a PAN card then she can open a Demat account in her name (which should exactly match the name(s) mentioned on the certificate and then submit the same for Dematerialization (the overall cost would be less but time involved would be more)

Answer 2

MUMBAI, JUNE 3
The 2000 stock scam case involving Jermyn Capital LLC has taken an interesting turn with the Securities Appellate Tribunal (SAT) allowing Dubai-based Jermyn Capital LLC to sell the shares held by the company ‘‘to insulate against market risks’’.
Sebi had earlier banned the company from buying and selling in the Indian market for its alleged nexus with Ketan Parekh entities.
Dharmesh Doshi— who according to Sebi, is a co-accused in the Ketan Parekh scam and against whom non-bailable warrant has been issued by a court in Ahmedabad and a Red Corner Notice by Interpol—is a director and compliance officer in London-based Jermyn Plc, a sister concern of Jermyn LLC.
‘‘The appellant (Jermyn) has given an undertaking in the application that in case the permission is granted it shall deposit the sale proceeds in an escrow account with ICICI Bank, the custodian and designated bank of the appellant which is a sub-account of a foreign institutional investor. Notice of this application was given to the respondent (Sebi) which has opposed the prayer,’’ SAT presiding officer Justice NK Sodhi and member C Bhattacharya said in their order dated May 8, 2006.
‘‘Jermyn wants to insulate itself against the market risks by selling the shares/securities presently held by it... The balance of convenience is clearly on the side of the appellant. In case the appeal succeeds and the market crashes even then the appellant would lose and not the respondent. We, therefore, permit the appellant to sell the shares/securities presently held by it through recognised exchanges,’’ SAT said.
When contacted, Sebi officials refused to comment.
The case relates to Rs 70-crore share transaction involving Ketan Parekh and European Investments Ltd. Parekh, who bought the shares from EIL, defaulted on payment to the latter. EIL subsequently went to court.
Alleging linkages between Ketan Parekh and Doshi, Sebi’s interim order issued late last year said Jermyn Plc was formerly known as Triumph Securities UK Plc, ultimately a 100% subsidiary of Triumph International Finance (TIFIL). In June 2002, Triumph Securities UK Plc was renamed as Jermyn Capital Partners Plc. Parekh held around 15.84% stake in TIFIL and Dharmesh Doshi 30.91% stake. They were directors on the board of TIFIL.
‘‘Though SAT has directed Sebi to examine the material and information supplied by Jermyn and pass a final order by January 13, 2006, this has not happened so far,’’ said London-based Dharmesh Doshi, adding, ‘‘I’m prepared to face questioning by any agency in India... the authorities should withdraw the red corner notice.’’
According to Sebi, Jermyn Capital LLC was incorporated in September 2003 for dealing in the Indian securities market. Jermyn’s response is Doshi is not involved in anyway in the business of Jermyn LLC