Inter-se Transfer of Shares Among promoters

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CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Inter-se transfer= Internal transfer among promoter(s) and promoters group.

A Listed Company having promoters' and promoters' group holding around 60%. Now one promoter wants to transfer its 7% shares to other promoter(s).

It would be inter-se transfer under section 3(1)(e) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. And fully allowed subject to certain disclosures under Takeover Code and Insider Trading regulations.

How the transfer can take place?? Transfer can only be made through Stock Exchange.

In case he sells shares, it is not necessary that only that promoter will purchase share. Any other persons may also purchase those shares.

Then how it remain internal transfer among promoters.

Replies (7)

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

I think it is very simple. Simply go for off-line transfer. Fill-up the slips (received with d-mat accont opening kit) and submit the same to the concerned DP.

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Thanks Ankur Ji.

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

But what about STT??

if STT has not been paid, seller has to pay long term Capital Gain.

CA.SKR

CA; CS-Final (One Group); DISA (ICAI); I

442 Points Joined August 2009

Originally posted by : Ankur Srivastava
	But what about STT?? if STT has not been paid, seller has to pay long term Capital Gain.

Dear Ankur,

You are right that in case of off - line transfer, STT is not applicable and accordingly Capital gain will be taxable in the hands of the seller as short term or long term Capital gain / loss, as the case may be.

Arnav

Student

29 Points Joined November 2008

You can do a block deal. STT would be paid and it would be regarded as one to one transaction.

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

In order to facilitate execution of large trades, a separate trading window is provided. A trade, with a minimum quantity of 5,00,000 shares or minimum value of Rs.5 crore executed through a single transaction on this separate window of the stock exchange will constitute a BLOCK Deal.

However, the transaction does not fall under the category of Block Deals.

vijeta

Company Secretary

39 Points Joined February 2011

Dear Sir,

Can you please tel me that when we follow the procedure of transfer of shares then is it neccessary that the shares should be in demat form in case of inter- se transfer under regulation 10 (1) (a) (ii) according to new takeover code.

if physical shares can be transfered then what is the procedure for transfer of share.