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Why do shareholders have to wait till the expiry of the validity period of the original warrant? Is it possible for you to issue stop payment instructions to the bank for the original warrant and issue a duplicate immediately?

mahindra-finance-author

by Mahindra Finance

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July 21, 2023

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1 mins read

Since the dividend warrants are payable at par at all branches of the dividend banker across the country, it is not practically possible for banks to issue stop payment instructions. Hence, it becomes necessary for us to wait till the expiry of the validity of original warrant. The warrant is issued in the name of the shareholder only so that the fraudulent encashment of the warrant is very remote or negligible.

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