Chapter IV - Share Capital and Debentures
Section 57
Section 57: punishment for impersonating a security holder
A person who deceitfully personates the owner of a security, interest, share warrant or coupon to obtain it, or to receive money due to the owner, faces imprisonment and a fine.
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Need advice on Section 57?
This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
If any person deceitfully personates as an owner of any security or interest in a company, or of any share warrant or coupon issued in pursuance of this Act, and thereby obtains or attempts to obtain any such security or interest or any such share warrant or coupon, or receives or attempts to receive any money due to any such owner, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
Introduction
Section 57 is a criminal provision against identity fraud in company securities. It covers attempts as well as completed acts.
The punishment is imprisonment of not less than one year and up to three years, and a fine of not less than one lakh rupees and up to five lakh rupees. The consolidated text shows no amendment. The section came into force on 12 September 2013 under S.O. 2754(E).
Key takeaways
Deceitful personation
The offence requires deceitfully personating an owner of a security, interest, share warrant or coupon.
Attempts covered
Obtaining or attempting to obtain the security, or receiving or attempting to receive money due to the owner, is covered.
Imprisonment and fine
One to three years and a fine of one lakh to five lakh rupees; both apply.
Identify the conduct
The provision applies where a person deceitfully personates an owner of any security or interest in a company, or of a share warrant or coupon issued under the Act. The person must thereby obtain or attempt to obtain the security, interest, warrant or coupon, or receive or attempt to receive money due to the owner.
Punishment
The punishment is imprisonment of not less than one year and up to three years, and a fine of not less than one lakh rupees and up to five lakh rupees. The word "and" means both imprisonment and fine follow on conviction.
Controls for companies and RTAs
Verify identity before processing transmission, duplicate-certificate or dividend-payment requests. Match signatures and records, and escalate suspected personation for legal action.
Practical preparation
Verify the claimant’s identity and title documents. Cross-check the register of members. Hold suspicious requests. Preserve the documents and report the matter for legal advice.
Practical checklist
Do
- Keep KYC and signature records for security holders.
- Escalate suspicious transmission or payment claims promptly.
Avoid
- Do not release dividends or certificates on unverified identity documents.
Illustrative example
Hypothetical: impersonating a registered shareholder to redirect dividend
A person who is not the shareholder sends the RTA a request, in the name of a living registered shareholder and bearing a forged signature of that shareholder, asking for future dividend on the shares to be paid into a new bank account that the person controls.
Detect
The RTA finds that the signature and contact details do not match the records held for the registered shareholder, and confirms with the shareholder that no such request was made.
Hold
The company does not change the bank mandate, pays no dividend to the new account and preserves the request and documents.
Act
Legal advice is taken on action under section 57.
Outcome
- Pretending to be the registered shareholder in order to receive dividend due to that shareholder is the kind of attempt section 57 describes. Whether to pursue a complaint under section 57, or under other laws such as those on forgery or cheating, is decided on legal advice.
Glossary
- Personation
- Pretending to be another person, here the owner of a security or interest in a company.
Frequently asked questions
Is an attempt punishable?
Yes. Section 57 covers attempts to obtain the security or to receive the money, as well as completed acts.
Is the fine alternative to imprisonment?
No. Section 57 provides imprisonment and a fine.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026