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

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.

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! Hereโ€™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.



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