Republic Day Offer: 20% OFF on CAclubindia Pro! Use Code RDAY20. Subscribe Now!

Transfer of shares

229 views 1 replies

Dhara

Company Secretary

298 Points Joined November 2015

Dear All,

In case of Transfer of shares on share transfer deed ie SH-4 i have following queries:

1)The date of execution will be which date??? the date of franking or later or we can mention back dated date also???

2) Board resolution for approval of transfer would be after receving transfer deed duly franked right??

3) Share certificate needs to be issued within 60days of passing BR after transfer?

4) The value of shares would be nominal/face value or we can do valuation of shares and remove value of shares?? for ex my nominal/face value is rs 10 but as per valuation my share price comes to rs19. Can i consider Rs 19 per shares and pay stamp duty as on that value?

Pls reply its a bit urgent

Thanks & Regards,

Dhara Shah

Replies (1)

Pratik Shah

Practising Company Secretary

4432 Points Joined October 2014

1. The date of execution shall be the date of franking or later date. It can not be backdated.

2. Within 60 days from the date of execution, the transferor/transferee has to deliver the Forms to the Company for registering the same. Hence, it shall be after the date of receiving transfer deed.

3. No, the certificate shall be delivered within 30 days from the date of receipt of share transfer form. Section 56(4)(c).

Kindly refer Section 56. You get answers to all your queries.