Equity Share Related Enquiry

Respected Members

I have a genuine question regarding Equity Shares in the Secondary Markets in India .

Mr. A and his wife Mrs A have DEMAT account since 2007 and both of them have invested in BSE and NSE listed companies' equity shares over the years since 2007 .

Now in November 2024 , the Market Value of Equity Shares in the DEMAT account of Mr. A is Rs. 12 Lacs

And the same for Mrs. A is Rs. 15 Lacs .

Now both of them have decided to form a Private Limited Company for the purpose of investment in equity shares in the primary and secondary markets in India and both of them will be the shareholders and directors in the company .

Now , is it possible to transfer the individual equity shares owned by them in their respective DEMAT accounts to the Demat account of their private limited company? So that in future the Private Limited Company can act as an investment cum holding company .

Please suggest

Yes, it is possible to transfer individual equity shares to a private limited company's DEMAT account.

This process is called "transmission of shares" or "transfer of shares".

Here's a step-by-step guide:

1. Check if the private limited company is eligible to hold shares: Ensure the company's Memorandum of Association (MOA) and Articles of Association (AOA) permit it to hold investments in other companies.

2. Obtain a DEMAT account: Open a DEMAT account in the name of the private limited company if it doesn't already have one.

3. Get an ISIN number: Obtain an ISIN (International Securities Identification Number) for the shares to be transferred.

4. Fill out the transmission form: Submit a transmission form (usually available on the depository's website or at the depository participant's office) with the required details.

5. Attach required documents: Attach the share certificates, a copy of the company's PAN card, and other necessary documents.

6. Submit the form: Submit the form and documents to the depository participant or the company's registrar and transfer agent.

7. Pay stamp duty: Pay the applicable