Transfer Of Share

1. Obtain the Transfer Deed
   • The transfer deed must be in the prescribed format, i.e., Form SH-4, as endorsed by the relevant authority.
2. Exceptions to the Prescribed Form (Form SH-4)
   The instrument of transfer may not be required in Form SH-4 in the following cases:
   • When a director or nominee transfers shares on behalf of another body corporate under Section 187 of the Companies Act, 2013.
   • When a director or nominee transfers shares on behalf of a government-owned corporation.
   • When shares are transferred as a security deposit for a loan or advance with any of the following:
     • State Bank of India
     • Any scheduled bank
     • Any other banking company
     • Financial institution
     • Central or State Government
     • Corporation owned by the Central or State Government
     • Trustees who have filed the required declarations
3. Transfer of Debentures
   • A standard format may be used for transferring debentures instead of Form SH-4.
4. Registration of Transfer
   • The Articles of Association (AOA) (for shares) or trust deed (for debentures) must be reviewed.
   • The transfer deed must be registered by the transferor and transferee or on their behalf in compliance with the Companies Act, 2013.
5. Stamp Duty Requirements
   • The transfer deed must be stamped as per the Indian Stamp Act and the applicable state stamp duty notification.
   • The current stamp duty rate is 25 paise per ₹100 of share value or part thereof.
     • Example: For shares worth ₹1,050, the stamp duty would be ₹2.75.
6. Stamp Cancellation
   • The stamp affixed on the transfer deed must be canceled at the time of or before signing the transfer deed.
7. Witness Verification
   • A person providing signature, name, and address as approval must ensure that both the transferor and transferee sign the transfer deed in their presence.
8. Submission to the Company
   • The transfer deed must be attached to the relevant share/debenture certificate or allotment letter and submitted to the company.
9. Notification for Partly Paid Shares
   • If the transfer involves partly paid shares, the company must:
     • Notify the transferee about the due amount on shares/debentures.
     • Obtain a No Objection Certificate (NOC) from the transferee within two weeks of receiving the notice.
10. Lost Transfer Deed
    • If the signed transfer deed is lost, a written application with a stamp of equal value must be provided.
    • The board may approve the transfer under specific terms of indemnity.
11. No Transfer Fees for Listed Companies

If the company is listed on a recognized stock exchange, it cannot charge any fees for registering share or debenture transfers.