The shares are getting transferred of a company registered under Companies act 1956, I am confused, at the time of transfer which is now March 15, we should be using Form SH-4 as a transfer instrument (AS PER 2013 ACT).... since the shares certificate is as per Companies Act 1956 and not as per Companies Act 2013 (form SH-1).
24 March 2015
My qstn exactly is should i use form 7B (CA 1956) for transfer since the company is registered under 1956 Act, or should i use form SH-4 (CA 2013) ?
25 July 2025
You're right to seek clarity here — the transition between the Companies Act, 1956 and the Companies Act, 2013 can create confusion, especially in procedural matters like share transfers.
✅ Correct Form to Use for Share Transfer (as of March 2015) Even though the company was incorporated under the Companies Act, 1956, as of March 2015, the Companies Act, 2013 is in force. The relevant provisions for share transfer under the 2013 Act became effective from 1st April 2014.
🚨 So, you should use Form SH-4, not Form 7B. Here's why: Form SH-4 is the prescribed instrument of transfer under Rule 11(1) of the Companies (Share Capital and Debentures) Rules, 2014, which is framed under Companies Act, 2013.
Form 7B was relevant under the Companies Act, 1956, but became obsolete post the enforcement of the 2013 Act provisions on share capital and transfer.
🔍 But What If the Share Certificate Was Issued Under the Old Act? That's fine — the form of the share certificate doesn’t determine the applicable law. The transfer process is governed by the law in force at the time of transfer, not at the time of issue of the certificate.
So:
Use Form SH-4
Ensure it's duly stamped and executed within 60 days from the date of execution
Attach relevant share certificate and board resolution for approving the transfer
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