Call our Filingpoint Transfer of Shares Expert +91 72999 72500
The Filingpoint Transfer of Shares is when an investor passes the ownership of shares to another person. This is a process that is governed by the company's constitutional documents or shareholders' agreement. These documents may impose reasonable restrictions on share transfers.
After a share transfer is completed, the company will issue a new share certificate in the name of the new owner. This process usually takes a week or two. The company will also update its records of shareowners. In addition, the transfer might have tax implications depending on when it took place and the type of shares. The transferor will be liable to pay short-term capital gains or long-term capital gains, as well as stamp duty.
A transfer of shares will be accompanied by a transfer of share transfer deed, which holds the details of the buyer and seller, as well as the number of shares transferred and the agreed price. It will be a legal document that must be signed by both parties. It will then be submitted to the company for registration. If the company rejects the transfer, it must provide the reasons for the rejection in a written notice.
Investors can also move their shares from one Demat account to another by filling a Delivery Instruction Slip or DIS with their current stockbroker. This process requires some days to complete and will incur charges from the broker. This is called an Off-Market Transfer. The reason codes for transferring shares can be found in the attached document (File name: Off Market Reason Codes). Investors should read the document carefully before submitting their DIS.
Contact Filingpoint Transfer of Shares Expert +91 72999 72500
Comments
Post a Comment