My cousin asked me how to convert her physical stock certificate into electronic form so that it could be included in her existing online portfolio ready.
Through the help of COL Financial, we were able to know the process of lodgement. We will use the COL process in converting to electronic form.
As per my own understanding, lodgement is depositing the stock certificates to his/her online account. The number of stocks in the certificates will be converted into electronic shares that will reflect in his/her online portfolio. Once reflected, shares can be sold online.
Please take note that the stock certificates should be already under your name. Otherwise, you have to contact the respective Stock Transfer Agent of the Stock’s assigned agent. Every publicly listed companies has its own assigned stock transfer agent. You can go to PSE website to check.
Moving forward let’s see the flow of lodgement process once the stock certificate is already under your name.
- Stockholder must open an account, if no existing account yet.
- Stockholder must prepare all necessary documents such as;
- Stock Certificates – must be already in the name of account holder
- Signature card – can be acquired in COL’s offic
- Account holder’s Signature – Consult with COL about your signature at the back of your stock certificate. If there are erasures or change of signature should obtain signature card for new signature.
- Provide two (2) government IDs
- Signatures and names should be the same for both IDs and stock certificates provided.
- Additional Requirements for Joint and/or Ownership
- Government IDs – All owners should provide two (2) valid government IDs
- Stock Certificates – Should sign at the back of the stock certificates
- Signature Card – Should sign at the signature card
- Additional Requirements for Corporate ownership
- Secretary’s certificate – To indicate the authorize signatories for the stock certificate lodgement.
- Payment of the fee – If you have an existing account, your account will be debited or will require you to pay lodgement fee, accordingly.
A processing fee will be charged by the transfer office:
- P100 transfer fee per stock
- P20 cancellation fee per certificate + 12% VAT for non-bank transfer office
- Example: Lodgement of 1 Certificate of Stock A
- (P100 transfer fee + P20 cancellation fee) = P120.00
- + P14.40 VAT (non-bank transfer office) = P134.40
You have to take note the things below to avoid any delay in the process:
- Name, especially for ladies – Used name in the stock certificate is maiden name.
- Name or signature on stock certificates is different from the IDs submitted.
- Replacement of stock certificates due to changes in corporate name or par value.
- Record with the transfer office that require updating.
- Submit your requirements to Col Financial or your preferred stockbroker. To comply with regulations, you should submit personally your documents to avoid loss of documents if through courier or mail.
Once you have completed all the requirements or the process has been completed, the stockbroker will credit the shares into your account at CURRENT MARKET VALUE. You can now start managing your stocks converted into electronic form.
Do you have physical stock certificates on hand under your name? You better convert your stock certificates into electronic form to avoid unseen events like theft, lost, fire etc…
PS. You can contact COL Financial or your preferred Stockborker for related concerns in converting your stocks certificates into electronic form.
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