Correspondence Regarding Transfer and Transmission of Shares

6. Correspondence Regarding Transfer and Transmission of Shares

Transfer of shares [Section 56, Companies Act, 2013]: a transfer is the voluntary act of a member selling or otherwise handing over their shares to another person, executed through a proper instrument of transfer (Form SH-4, where shares are still held in physical form) duly stamped, dated and signed by both the transferor and the transferee, and delivered to the company within the prescribed period. On receiving a valid transfer deed, the Secretary registers the transfer in the Register of Members and writes to the transferee acknowledging the transfer and confirming the new folio, and may also inform the transferor of the change. Where shares are held in dematerialised form, the transfer takes place through the Depository system itself and the company simply receives a beneficial-ownership update — no separate transfer deed is needed.

Transmission of shares: a transmission is quite different — it is not a voluntary act at all, but the automatic passing of shares to another person by operation of law, most commonly on the death of a member (to the legal heir/nominee), or on their being adjudged insolvent or of unsound mind (lunatic). Because transmission does not involve a sale, no instrument of transfer or stamp duty is required; instead the person claiming the shares must produce proof of title — a succession certificate, probate of will, or letter of administration in the case of death (or a simpler nomination-based claim where the deceased member had validly registered a nominee), or an order of the competent court in the case of insolvency or unsoundness of mind. On being satisfied, the Secretary registers the transmission and writes to the claimant confirming that the shares now stand in their name.

Specimen letter acknowledging a transfer of shares:

SAHYADRI TEXTILES LIMITED
Regd. Office: 88, Shivaji Nagar, Kolhapur - 416 003
CIN: L17110MH2010PLC201456

Ref. No. STL/CS/2025-26/388                                    Date: 6th April, 2026

To,
Mr. Ajay S. Kadam
45, Tilak Road,
Kolhapur - 416 002

Dear Sir,

Sub: Registration of Transfer of Equity Shares

We acknowledge receipt of the duly executed Instrument of Transfer (Form SH-4) transferring 200 Equity Shares of Rs. 10 each, held by Mr. Suresh N. Patil under Folio No. STL-06214, in your favour.

We are pleased to inform you that the transfer has been registered by the Board of Directors, and the said 200 shares now stand in your name under a new Folio No. STL-07103. Your share certificate reflecting the transfer will be despatched to you within the statutory period.

Yours faithfully,
For Sahyadri Textiles Limited

(Sd.)
Meenal R. Sawant
Company Secretary

Specimen letter registering a transmission of shares:

SAHYADRI TEXTILES LIMITED
Regd. Office: 88, Shivaji Nagar, Kolhapur - 416 003
CIN: L17110MH2010PLC201456

Ref. No. STL/CS/2025-26/402                                    Date: 22nd May, 2026

To,
Mrs. Sushila S. Kulkarni
9, Ganesh Colony,
Kolhapur - 416 005

Dear Madam,

Sub: Registration of Transmission of Equity Shares …