Information

Transfer of shares

Transfer of shares is a transaction resulting in a change of share ownership. A shareholder, whether in public or private company, has a property in his share which he has a right to dispose of, subject only to any express restriction which may be found in the articles of the company.

Under section 56 of the Companies Act, 2013 a company will register a transfer of securities of the company (which includes shares), only when a proper instrument of transfer as per the format laid down in Form No SH. 4 (when such securities are held in the physical form). The form needs to be duly stamped, with adequate value, dated and executed by or on behalf of the transferor and the transferee.

The form needs to be sent to the company by the transferor or the transferee within a period of sixty days from the date of execution, along with the share certificate/certificate relating to the securities. In case there is no such certificate, the application must be sent along with the letter of allotment of securities.


Transmission of shares

Transmission of shares is transfer of shares on account of operation of law. Transmission of shares takes place in case of death, insanity and insolvency of a member or where the member is a company on its liquidation

The effect of the transmission of shares is that the legal representative, administrator or the official assignee or receiver, as the case may be shall be entitled to shares.

Documentation :-

Transfer of shares
  • SH 4 Duly stamp pasted to be submitted within 60 days
  • Pan card/ Aadhar Card
Transmission of shares

File a simple application with the Company with pertinent documents such as:

  • Death Certificate,
  • Succession Certificate,
  • Probate,
  • Specimen Signature of Successor etc., dependent upon various circumstances may perhaps be considers essential for transmission by the Company

FAQ :-

Transfer of shares
How do I transfer physical securities to my name?

Execute an instrument of transfer which shall be in Form No. SH-4

  • fill in the required details
  • ensure that the transferor(s) and transferee(s) have signed in the space indicated and that the signature(s) of the transferor(s) is witnessed
  • attach self attested copy of the PAN Card of the transferor(s) as well as of the transferee(s)
  • have requisite stamp duty franked/affixed on the instrument of transfer (refer to Special note in this regard)
  • deliver the instrument of transfer along with the relevant securities to the Company's Registrars within 60 days from the date of its execution specified thereon
  • Blank transfer forms would be available with your local stockbroker / Stock Exchange. The same can also be downloaded from the TSRDL website.
What amount of stamp duty should I affix on the instrument of transfer?

The Government of India, Ministry of Finance, Department of Revenue has Fixed the stamp Duty on transfer of shares at the rate of twenty-five paise (Re. 0.25) for every hundred rupees (Rs. 100) or part thereof of the value of the shares.

Electronic transactions do not attract any stamp duty, however each depository participant may levy a transaction charge. The rate should be confirmed with your depository participant beforehand.

Why should I keep securities in joint names?

It is advisable to register securities in joint names in order to facilitate Succession.

If I wish to add the name of my spouse, children or any other person, OR gift the shares, what procedure should I follow?

Addition of the name of a joint holder OR gifting of shares to, even a family member, is considered a "Transfer" and attracts stamp duty. An instrument of transfer which shall be in Form No. SH-4 would be required to be executed. Blank transfer forms would be available with your local stockbroker / Stock Exchange and can also be downloaded from the TSRDL website.(Please refer to point I.B. for amount of stamp duty payable.)

For securities held in electronic form, please contact your depository participant.

Transmission of shares
What does transmission mean?

Transmission is the process of law by which securities belonging to a deceased account holder are transferred to surviving joint holder(s) / legal heirs / nominee of the deceased account holder. Process of transmission in case of dematerialized holdings is relatively convenient as the transmission formalities for all securities held in a demat account can be completed by submitting the requisite documents to DP. There is no need to approach various companies for this purpose, as is required when securities are held in physical form.

Upon death of account holder (sole holder or joint holder), how the transmission will take place, is described in the diagram

In the event of Transmission in favour of
Nomination Given Nomination Not Given
Death of single holder Nominee Legal heir (as per Succession certificate / Probate / Letter of Administration)
Death of one of the joint holder Surviving joint holder(s) Surviving joint holder(s)
Death of all the joint holder Nominee Legal heir (as per Succession certificate / Probate / Letter of Administration)
What is the procedure for transmission of securities to the nominee in case of the death of the sole account holder?

In case of the death of the sole holder, for transmission of securities, the nominee needs to submit duly filled-in transmission form along with a copy of the death certificate duly attested by a Notary Public or a Gazetted Officer. In case the account of the claimant is not with the same Participant, copy of Client Master Report of the account of the claimant (certified by the concerned DP) is also required. After verification of these documents, the DP will transmit the securities to the demat account of the nominee.

What would happen if there is no nominee in the demat account held by sole holder?

In such a case, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. Following documents are required for this purpose :-

  • Duly filled in Transmission Form
  • Copy of the death certificate duly attested by a Notary Public or by a Gazetted Officer
  • A copy of the Succession certificate duly attested by a Notary Public or by a Gazetted Officer or
  • An order of a court of competent jurisdiction where the deceased has not left a Will or
  • A copy of the Probate of Will or
  • Letter of Administration duly attested by a Notary Public or by a Gazetted Officer
  • In case the account of the claimant is not with the same Participant, copy of Client Master Report of the account of the claimant is also required (certified by the concerned DP)
What is the procedure for transmission in case of death of one or more joint holder(s)?

In such a case, the securities would be transmitted to the surviving holder(s), irrespective of the nomination. For example, if the account is in the joint names of Mr. A, Mr. B and Mrs. C, in the event of the death of Mr. B, the securities will be transmitted to surviving holders that is, Mr. A and Mrs. C. The surviving holder(s) would need to submit the following documents to the DP:

  • Duly filled in transmission form
  • Copy of death certificate duly attested by a notary public or by gazetted officer

After verifying the above documents and satisfying himself, the DP will transmit the securities to the surviving holder(s) account and will close the account of the deceased

Information
Transfer of shares

Transfer of shares is a transaction resulting in a change of share ownership. A shareholder, whether in public or private company, has a property in his share which he has a right to dispose of, subject only to any express restriction which may be found in the articles of the company.

Under section 56 of the Companies Act, 2013 a company will register a transfer of securities of the company (which includes shares), only when a proper instrument of transfer as per the format laid down in Form No SH. 4 (when such securities are held in the physical form). The form needs to be duly stamped, with adequate value, dated and executed by or on behalf of the transferor and the transferee.

The form needs to be sent to the company by the transferor or the transferee within a period of sixty days from the date of execution, along with the share certificate/certificate relating to the securities. In case there is no such certificate, the application must be sent along with the letter of allotment of securities.


Transmission of shares

Transmission of shares is transfer of shares on account of operation of law. Transmission of shares takes place in case of death, insanity and insolvency of a member or where the member is a company on its liquidation

The effect of the transmission of shares is that the legal representative, administrator or the official assignee or receiver, as the case may be shall be entitled to shares.

Transfer of shares
  • SH 4 Duly stamp pasted to be submitted within 60 days
  • Pan card/ Aadhar Card
Transmission of shares

File a simple application with the Company with pertinent documents such as:

  • Death Certificate,
  • Succession Certificate,
  • Probate,
  • Specimen Signature of Successor etc., dependent upon various circumstances may perhaps be considers essential for transmission by the Company
Transfer of shares
How do I transfer physical securities to my name?

Execute an instrument of transfer which shall be in Form No. SH-4

  • fill in the required details
  • ensure that the transferor(s) and transferee(s) have signed in the space indicated and that the signature(s) of the transferor(s) is witnessed
  • attach self attested copy of the PAN Card of the transferor(s) as well as of the transferee(s)
  • have requisite stamp duty franked/affixed on the instrument of transfer (refer to Special note in this regard)
  • deliver the instrument of transfer along with the relevant securities to the Company's Registrars within 60 days from the date of its execution specified thereon
  • Blank transfer forms would be available with your local stockbroker / Stock Exchange. The same can also be downloaded from the TSRDL website.
What amount of stamp duty should I affix on the instrument of transfer?

The Government of India, Ministry of Finance, Department of Revenue has Fixed the stamp Duty on transfer of shares at the rate of twenty-five paise (Re. 0.25) for every hundred rupees (Rs. 100) or part thereof of the value of the shares.

Electronic transactions do not attract any stamp duty, however each depository participant may levy a transaction charge. The rate should be confirmed with your depository participant beforehand.

Why should I keep securities in joint names?

It is advisable to register securities in joint names in order to facilitate Succession.

If I wish to add the name of my spouse, children or any other person, OR gift the shares, what procedure should I follow?

Addition of the name of a joint holder OR gifting of shares to, even a family member, is considered a "Transfer" and attracts stamp duty. An instrument of transfer which shall be in Form No. SH-4 would be required to be executed. Blank transfer forms would be available with your local stockbroker / Stock Exchange and can also be downloaded from the TSRDL website.(Please refer to point I.B. for amount of stamp duty payable.)

For securities held in electronic form, please contact your depository participant.

Transmission of shares
What does transmission mean?

Transmission is the process of law by which securities belonging to a deceased account holder are transferred to surviving joint holder(s) / legal heirs / nominee of the deceased account holder. Process of transmission in case of dematerialized holdings is relatively convenient as the transmission formalities for all securities held in a demat account can be completed by submitting the requisite documents to DP. There is no need to approach various companies for this purpose, as is required when securities are held in physical form.

Upon death of account holder (sole holder or joint holder), how the transmission will take place, is described in the diagram

In the event of Transmission in favour of
Nomination Given Nomination Not Given
Death of single holder Nominee Legal heir (as per Succession certificate / Probate / Letter of Administration)
Death of one of the joint holder Surviving joint holder(s) Surviving joint holder(s)
Death of all the joint holder Nominee Legal heir (as per Succession certificate / Probate / Letter of Administration)
What is the procedure for transmission of securities to the nominee in case of the death of the sole account holder?

In case of the death of the sole holder, for transmission of securities, the nominee needs to submit duly filled-in transmission form along with a copy of the death certificate duly attested by a Notary Public or a Gazetted Officer. In case the account of the claimant is not with the same Participant, copy of Client Master Report of the account of the claimant (certified by the concerned DP) is also required. After verification of these documents, the DP will transmit the securities to the demat account of the nominee.

What would happen if there is no nominee in the demat account held by sole holder?

In such a case, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. Following documents are required for this purpose :-

  • Duly filled in Transmission Form
  • Copy of the death certificate duly attested by a Notary Public or by a Gazetted Officer
  • A copy of the Succession certificate duly attested by a Notary Public or by a Gazetted Officer or
  • An order of a court of competent jurisdiction where the deceased has not left a Will or
  • A copy of the Probate of Will or
  • Letter of Administration duly attested by a Notary Public or by a Gazetted Officer
  • In case the account of the claimant is not with the same Participant, copy of Client Master Report of the account of the claimant is also required (certified by the concerned DP)
What is the procedure for transmission in case of death of one or more joint holder(s)?

In such a case, the securities would be transmitted to the surviving holder(s), irrespective of the nomination. For example, if the account is in the joint names of Mr. A, Mr. B and Mrs. C, in the event of the death of Mr. B, the securities will be transmitted to surviving holders that is, Mr. A and Mrs. C. The surviving holder(s) would need to submit the following documents to the DP:

  • Duly filled in transmission form
  • Copy of death certificate duly attested by a notary public or by gazetted officer

After verifying the above documents and satisfying himself, the DP will transmit the securities to the surviving holder(s) account and will close the account of the deceased