When it comes to investments, share certificates are one of the most important ownership documents. They prove that you legally own shares in a company. However, many investors face issues when their name is incorrectly mentioned or has changed due to reasons such as marriage, divorce, or clerical errors. In such cases, an Affidavit for Name Change in Share Certificate becomes essential to correct and validate the records.

Unfortunately, a lot of investors make mistakes while preparing or submitting the affidavit, which delays the process and sometimes leads to rejection by the company or registrar. This blog will guide you through the affidavit process, highlight common mistakes to avoid, and explain the correct approach for a smooth name correction in your share certificate.

What is an affidavit for a name change in a share certificate?

An Affidavit for Name Change in Share Certificate is a sworn declaration made by the shareholder stating the correct name that should appear on the share certificate. It is a legal document, notarized or attested by a magistrate, that helps in officially confirming the change or correction of the shareholder’s name.

This affidavit acts as a supporting document along with other required papers such as identity proof, marriage certificate (if applicable), and the original share certificate. Without a proper affidavit, the registrar or transfer agent (RTA) may refuse to process your request.

Why is the Affidavit Necessary?

• Proof of Identity Correction: Ensures your shares are registered under the right name.

• Smooth Share Transfer: Prevents complications during transfer or sale of shares.

• Claiming Dividends & IEPF: Essential for claiming dividends, bonus shares, or recovering shares from the Investor Education and Protection Fund (IEPF).

• Legal Compliance: Companies and RTAs are bound by SEBI rules, and affidavits provide the legal base for corrections.

Common Mistakes to Avoid in Affidavit for Name Change in Share Certificate

Many investors unknowingly make errors while drafting or submitting the affidavit. Below are the most common mistakes and how you can avoid them:

1. Incorrect Format of Affidavit

One of the biggest mistakes is not using the correct legal format. Each company or registrar may have a prescribed format. Using a vague or incomplete affidavit can lead to rejection.

Tip: Always check with the company’s registrar or official website for the prescribed affidavit format before preparing the document.

2. Mismatch in Documents

If the name mentioned in the affidavit does not match with supporting documents (like Aadhaar, PAN, Passport, or Marriage Certificate), your application will be rejected.

Tip: Double-check spellings, initials, and order of names to ensure consistency across all documents.

3. Notarization Errors

Some investors prepare the affidavit but forget to get it properly notarized or attested by a magistrate. An unsigned or unattested affidavit holds no legal value.

Tip: Always get the affidavit attested by a Notary Public or First-Class Magistrate as per legal requirements.

4. Submitting Without Original Share Certificate

A name change request without attaching the original share certificate is incomplete. Many investors overlook this requirement.

Tip: Submit the affidavit along with the original share certificate to the RTA or company for correction.

5. Failure to Attach Supporting Documents

Merely submitting the affidavit is not enough. You must attach valid proof of name change such as:

• Marriage certificate (in case of name change after marriage)

• Gazette notification (in case of legal name change)

• Government-issued ID with the correct name

Tip: Always enclose self-attested copies of relevant supporting documents along with the affidavit.

6. Ignoring Company-Specific Guidelines

Every company may have slightly different requirements for documentation. Some may ask for an indemnity bond along with the affidavit.

Tip: Contact the company or registrar in advance and confirm the complete set of documents required.

7. Incomplete Personal Details

Another mistake is leaving out important details such as father’s name, address, folio number, or contact details in the affidavit. Missing information may cause delays.

Tip: Provide complete shareholder details in the affidavit, matching them with your share certificate.

8. Not Keeping Copies for Records

Many investors submit the affidavit and original documents without keeping a copy. If the application is misplaced, it becomes difficult to prove submission.

Tip: Always keep notarized copies of the affidavit and acknowledgement receipt from the registrar/company.

Correct Procedure for Name Change in Share Certificate

Here’s the updated step-by-step process to ensure smooth execution:

1. Prepare the Affidavit: Draft the affidavit in the prescribed format, mentioning old name, new name, folio number, and company details.

2. Notarization: Get it notarized or attested by a magistrate.

3. Attach Documents: Include supporting documents such as marriage certificate, gazette notification, PAN, Aadhaar, or passport.

4. Submit Original Share Certificate: Send the affidavit along with the share certificate to the company’s registrar.

5. Indemnity Bond (if required): Some companies may ask for this additional legal document.

6. Receive Corrected Certificate: Once verified, the company issues a corrected share certificate in your updated name.

Final Thoughts

An Affidavit for Name Change in Share Certificate is a crucial document that helps shareholders correct and update their ownership records. However, even small mistakes in drafting, notarizing, or attaching documents can cause unnecessary delays. By avoiding the common mistakes listed above and following the correct procedure, you can ensure a hassle-free correction process.

If you are unsure about the affidavit format or documentation, it is always wise to consult experts or legal professionals who specialize in share certificate correction and IEPF recovery. A little guidance can save you from delays, rejections, and financial complications in the future.