SHAREHOLDING COMPLIANCE

Share Transfer

Transfer existing shares with proper documentation, applicable approvals and statutory compliance under the Companies Act, 2013.

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OVERVIEW

What Is a Share Transfer?

Share transfer means transferring ownership of existing shares from one person, known as the transferor, to another person, known as the transferee.

The process involves executing the prescribed transfer instrument, submitting the required documents, obtaining applicable approvals and registering the transfer with the company.

LEGAL FRAMEWORK

Companies Act, 2013

Section 56 governs the transfer and transmission of securities, subject to applicable provisions, rules and the company's Articles of Association.

Form SH-4 Prescribed transfer instrument, where applicable

STEP-BY-STEP GUIDE

Share Transfer Procedure

Follow the applicable documentation and registration process to complete a share transfer in accordance with the law.

Execute Form SH-4

The transferor and transferee must execute the prescribed share transfer instrument in Form SH-4, duly dated and stamped, where applicable, under Section 56 and the relevant rules.

Pay Applicable Stamp Duty

Ensure the transfer instrument is duly stamped and the applicable stamp duty is paid in accordance with the relevant requirements.

Submit Transfer Documents

Submit the duly executed transfer instrument, together with the relevant share certificate or letter of allotment, to the company within the prescribed timeline.

Approval & Registration

The company processes the transfer under the Companies Act, its Articles of Association and applicable requirements. Where required, the Board approves the transfer and passes the necessary resolution.

Issue New Share Certificate

After registration of the transfer, the company must deliver the share certificate to the transferee within the applicable statutory timeline, subject to the relevant provisions.

DOCUMENTATION

Documents Required for Share Transfer

Prepare the relevant documents before submitting the transfer request to the company. Requirements may vary depending on the nature of the transfer and the company's governing documents.

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REQUIRED DOCUMENTS Share Transfer Checklist

5 items

Form SH-4

Duly executed and stamped, where applicable
Share Certificate

Relevant certificate or letter of allotment
Transferor & Transferee Details

Relevant identity and transfer particulars
Board Resolution

Where required under the AOA or applicable rules
Supporting Documents

Any additional documents required by the company

IMPORTANT CONSIDERATIONS

Key Share Transfer Compliance Points

Keep these important requirements in mind while processing a transfer of shares.

Correct Documentation

Ensure the transfer instrument is properly completed, executed and dated.

Stamp Duty

Verify and pay the applicable stamp duty according to the relevant requirements.

Timely Submission

Deliver the transfer instrument and required documents within the prescribed period.

AOA Requirements

Check the Articles of Association for applicable restrictions, approval procedures and transfer conditions.

EXPERT ASSISTANCE

Planning to Transfer Shares in Your Company?

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