Thursday, July 15, 2010

Procedure for transfer of shares held in physical form

FAQ's on Procedure for transfer of shares held in physical form

 I have purchased XXX shares. How do I get them registered? How long will it take?
The shares for transfer may be lodged with Registrar and Share Transfer Agent (RTA) or the Company at its Registered Office. All transfer requests are processed by the RTA within a period of 15 to 30 days from the date of receipt, if documents are in order in all respect. In case of non-receipt of response from the RTA within 30-35 days of lodging the transfer request, you may contact them with details of documents to find out the current status of shares.
I would like to gift some shares to my children/relatives. How do I get them registered in their names? Does it involve stamp duty?

The procedure of registration of shares gifted is same as the procedure for a normal transfer. The stamp duty is also applicable in case of gifted shares, and the duty is at 0.5% of the market value prevailing on the date of execution of the transfer deed by the transferee.

 Where should I send the shares for transfer?

The Registrar and Share Transfer Agent only carry out Registration of Share Transfer. You will have to lodge the shares, either by personal delivery or through post/reputed courier. The address of the RTA would be available at the companies web site. 


What is the stamp duty on shares? Where do I get these stamps?

The stamp duty applicable on share transfer is at 0.5% on the market value on the date of execution of the transfer deed. Share Transfer Stamps can be obtained from the authorized stamp vendors. Your share broker can also help you in this regard.

  How do I ensure that the Transfer Deed is complete before sending it to the company?
Please fill in all the columns of the transfer deed, sign as transferee at appropriate places and affix share transfer stamps at 0.5% of the market value on the date of execution of the transfer deed. Please ensure that the transfer deed is duly filled in and executed as explained, to avoid any discrepancy/objection on lodgment.

  I want to add another joint-holder name to my shareholding. What is the procedure that I should follow?

You have to execute a transfer deed, duly stamped and submit the same to the Registrar and Share Transfer Agent for transfer. Please note that such addition of name amounts to change in ownership of shares and the procedure for transfer as defined in Q. No. 3 has to be followed.
Regards
S Rahul Vaid
 











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