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Share transfer without consideration
Can shares be transferred as gift (without any consideration)? If yes, what is the procedure?
Replies (4)
Yes shares can be transferred without consideration. If the shares are in demat form, the donor can submit a delivery instruction slip to his depository participant. Delivery instruction slip should have information like Donee's Name, Demat account details of Donee, name, quantity and ISIN number of the Shares to be transferred. Donee should submit a standing receipt instruction to his depository participant.
If gifting shares in physical form, fill and sign the share transfer deed in form 7B. Transfer is complete once the deed is register in the name of Transferee.
Gifted securities does not attract stamp duty as consideration is NIL.
Now transfer fo is SH 4
Do we have to do online filing of the same? Is there any reporting to be done online?
There is no online filing only you have to approve the transfer in board meeting and register in member register. At will be updated when you file. MGT 7 or 7a as the case may . Check Gift deed document and keep it in record and check the title of shares from your record
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