Rules for issuing Share Certificate.
This query is : Resolved
01 January 2011
Can any one clarify me the procedure and rules for issuing Share Certificates.
Regards
CS Taher
Regards
CS Taher
02 January 2011
log on www.mca.gov.in
02 January 2011
Pl see http://www.mca.gov.in/Ministry/actsbills/rules/CIoSCR.pdf
which contains "companies (issue of share certificates)Rules,1960" which is self explanatory.
which contains "companies (issue of share certificates)Rules,1960" which is self explanatory.
Message likes :
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02 January 2011
Dear Sir thank you for your valuable suggestion but i didn't find any relevant answer to my question by logging in "www.mca.gov.in".@ CA Sailesh
22 July 2025
Sure! Here’s a clear summary of the rules and procedure for issuing share certificates under Indian Company Law (Companies Act, 2013 and earlier Companies Act, 1956):
Rules & Procedure for Issuing Share Certificates
Time Limit to Issue Share Certificate
As per Section 46 of the Companies Act, 2013, a company must issue share certificates within 2 months:
From the date of allotment of shares, or
From the date of receipt of the application money in case shares are offered to the public.
If shares are transferred, certificates must be issued within 1 month from the date of lodgment of the transfer.
Format and Content
The share certificate must be in Form No. SH-1 (as per Companies (Share Capital and Debentures) Rules, 2014).
It should contain:
Name of the company
CIN (Corporate Identification Number)
Registered office address
Folio number
Name of the shareholder
Number and class of shares issued
Distinctive numbers of shares
Nominal value of shares
Signature of at least two directors and the company secretary or authorized person
Seal of the Company
The share certificate must be affixed with the common seal of the company (if applicable) and signed.
Numbering of Certificates
Each certificate must have a unique certificate number and distinct share numbers.
Delivery of Certificate
After issue, the company must deliver the share certificate to the shareholder.
Penalty for Non-Compliance
Failure to issue share certificates within the prescribed time can attract a penalty (Section 99 of the Companies Act, 2013).
Share Certificate Register
The company must maintain a Register of Members recording the details of shares issued and certificates.
Summary
Issue within 2 months (allotment) or 1 month (transfer).
Use prescribed format (Form SH-1).
Must be signed and sealed properly.
Keep records in Register of Members.
Rules & Procedure for Issuing Share Certificates
Time Limit to Issue Share Certificate
As per Section 46 of the Companies Act, 2013, a company must issue share certificates within 2 months:
From the date of allotment of shares, or
From the date of receipt of the application money in case shares are offered to the public.
If shares are transferred, certificates must be issued within 1 month from the date of lodgment of the transfer.
Format and Content
The share certificate must be in Form No. SH-1 (as per Companies (Share Capital and Debentures) Rules, 2014).
It should contain:
Name of the company
CIN (Corporate Identification Number)
Registered office address
Folio number
Name of the shareholder
Number and class of shares issued
Distinctive numbers of shares
Nominal value of shares
Signature of at least two directors and the company secretary or authorized person
Seal of the Company
The share certificate must be affixed with the common seal of the company (if applicable) and signed.
Numbering of Certificates
Each certificate must have a unique certificate number and distinct share numbers.
Delivery of Certificate
After issue, the company must deliver the share certificate to the shareholder.
Penalty for Non-Compliance
Failure to issue share certificates within the prescribed time can attract a penalty (Section 99 of the Companies Act, 2013).
Share Certificate Register
The company must maintain a Register of Members recording the details of shares issued and certificates.
Summary
Issue within 2 months (allotment) or 1 month (transfer).
Use prescribed format (Form SH-1).
Must be signed and sealed properly.
Keep records in Register of Members.
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