Transfer and Transmission of Shares

Transfer and Transmission of Shares

Transfer of shares/ Transmission of shares/ Transfer & transmission of share

Transfer deed

Transfer deed is involved during voluntary transfer of shares. 

No transfer deed is involved during transmission of shares.


Provision under Companies Act, 2013 and SEBI regulation, 2015

The transfer of share can only take place when appropriate instrument of share is submitted in the Form SH-4 as mentioned in the sub rule 1 of rule 11 of Companies Rules, 2014 along with stamp and other specifics of the transferor and transferee which is to be submitted 60 days before the execution of transfer with the share certificate and allotment letter. If partly paid shares are being transferred, then the company will send a notice of Form SH-4 intimating the transferee about the same, and the transferee should send in  no objection within 2 week of the notice sent.  

After verifying the applications along with the relevant documents, the transmission of shares will be executed unless prohibited by law for any reason. Following documents are considered while transmission – Copy of death certificate, Self attested copy of PAN card, Succession certificate/ will/ court decree and specimen signature of the heir. 

The  transfer of securities will only be executed if it is maintained in demat form with the depository.

Transmission of shares do not require dematerialized form of securities.

The Board of directors may employ someone to look after the compliance related to the transfer of securities who in turn reports to the directors during the meeting. The listed companies can issue certificates to the transferee as applicable.


Time Period for the delivery of certificates of securities transferred or transmitted

The delivery of certificates of all securities are made within 1 month from the date of receipt of transferred or transmitted shares by the company unless prohibited by law under any circumstances.


Penalty for Non-compliance

If there is any default while complying with the provisions effective then the company has to pay the penalty of minimum Rs.25,000 which may extend upto Rs.5,00,000 and every officer liable will be fined with minimum Rs.10,000 which may extend upto Rs.1,00,000.