I physically hold 100 shares of Dunlop India. Recently I got a letter from an investor service offering to purchase these shares at Rs40 per share. Currently the stock is trading on the BSE at Rs68 (January 22, 2011). Is the investor service genuine and does it make sense to sell it at Rs40? Can I sell my paper shares in the market?
- Vinod Subramanian
Investor Services India Ltd. (ISIL) is a registrar and transfer agent. They are not supposed to approach you to buy shares of companies. You should not believe in these letters, as these might be from fraudsters claiming to be representatives of ISIL. As you have seen yourself, the market price of the company’s shares is much above the price you are being offered. To sell the paper shares in the market, all you have to do is open a demat account and dematerialise your shares. Then you can easily sell your shares at the prevailing market price.