Transfer of Shares - Demat Form

[Richa Jain]

Hi all,

My Company is Private Limited and has shares in Demat Form. One of our shareholders wants to transfer his shares to another shareholder of our Company.

My doubt is apart from the Shareholder submitting the Delivery instruction slip to his DP, what are the formalities or procedures the Company has to follow? The traditional way was BR and SH4. 

Now, what we need to follow as a Company, please guide.

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Thanks & Regards
Richa Jain

[Ketan Loomba]

Dear Richa,

Since the Company’s shares are held in dematerialised form, the usual compliances such as obtaining Board approval for transfer of shares or executing Form SH-4 are not required, as the transfer is effected directly through the Depository participant.

However, from a good corporate governance standpoint, it is advisable to place the transfer before the Board for noting and to obtain the confirmation of transfer and updated BENPOS from the RTA so that the Register of Members can be properly updated.

Regards 

Ketan Loomba 

7987478832

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