Nice and Informative Discussion....These kind of dicussions are always helpful in brushing up and enhancing our knowledge. Very well explained by Sunil Sir.
Do not have anything extra to write....
Yes there is time limit whitin which the duly executed transfer deed shall be delivered to the company. It is like registration of a duly executed deed. It gets registered only when delivered to the company. Also the company will update its record upon receiving the Share Transfer Deed.
Validity of Transfer Deed i.e. Period within which it shall be delivered to the company:-
1) In case of Listed Companies - at any time before the date on which the register of members is closed, in accordance with law, for the first time after the date of the presentation of the prescribed form to the prescribed authority under clause (a) of section 108(1A) or within 12 months from the date of such presentation, whichever is later .
2) In case of Unlisted Companies - Within 2 months from the date of such presentation.
Extension of validity of transfer deed:
Where the validity period of an instrument of transfer has expired, namely, the instrument is beyond 12 months from the date of presentation to the prescribed authority or from the date of book closure whichever is later in case of shares of a listed company and in other case 2 months from the date of presentation, the holder may may apply online to RoC providing particulars of the company, share certificate numbers, etc. requesting for extension in the validity. The fee for such application is Rs. 50 where the nominal value of the shares is upto Rs. 5,000 and the fee is Rs. 100 where the value exceeds Rs. 5000.
The application shall be made to the Registrar of Companies, where the registered office of the Company is situated or under whose jurisdiction the transferor or transferee resides. The Registrar on satisfaction shall extend the validity for a period of 30 days from the date of approval by the Registrar. It should be noted that further extension would not be provided by the Registrar. Therefore, the transfer deed should be lodged with the company within the extended period only.
Time limit for issue of certificate on transfer:
1) Within a period of two months in case of unlisted companies:
Every company, unless prohibited by any provision of law or of any order of any Court, Company Law Board or other authority, shall, within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, deliver, in accordance with the procedure laid down in section 53, the certificates of all shares transferred.
2) Within a period of 30 days in case of listed companies:
In the case of a listed company, the listing agreement requires that the registration of transfers will be made within 30 days of receipt of the transfer deeds.