Share Transfer

Valid Share Certificates

For physical shares, original share certificates are required. For dematerialized shares, the shares must be held in a Demat account.

Transfer Deed (Form SH-4)

A duly filled and stamped share transfer deed is essential, signed by both the transferor and transferee.

Board Resolution

The company's Board of Directors must pass a resolution approving the share transfer.

Step 1: Execution of Share Transfer Deed

The Share Transfer Deed Form SH-4 is prepared and executed by both the transferor and transferee.

step 2: Stamping of Transfer Deed

The transfer deed must be adequately stamped as per the applicable Stamp Act.

Step 3: Submission to Company

Submit the duly executed and stamped SH-4 along with the original share certificates (in case of physical shares) to the company’s registered office within the prescribed time (generally 60 days from execution).

Step 4: Board Meeting for Approval

The Board of Directors reviews and approves the share transfer during a Board Meeting. The decision is recorded in the minutes, making the transfer legally valid.

Step 5: Update Register of Members

Upon approval, the company updates its Register of Members (Form MGT-1) to reflect the transferee’s details as the new shareholder.

Step 6: Issuance of New Share Certificates

• For physical shares, new share certificates are issued to the transferee within 1 month.
• For Demat shares, the transfer is effected by crediting the transferee’s Demat account.

Step 7: Filing Form PAS-3 (if applicable)

If the transfer leads to an increase in paid-up capital (due to re-issue of forfeited shares or fresh allotment), Form PAS-3 must be filed with the Registrar of Companies (ROC).