Understanding the Transmission of Shares is crucial for shareholders, especially during events like the death of a shareholder or loss of legal ownership. At Share Claimers, we simplify this legal process and help you reclaim your rightful shares with ease.
Key Differences Between Transmission and Transfer of Shares
Understanding the distinction is essential:
| Basis | Transfer of Shares | Transmission of Shares |
|---|---|---|
| Nature | Voluntary | Involuntary |
| Trigger | Sale, gift, or agreement | Death, insolvency, inheritance |
| Instrument | Requires a share transfer deed | No share transfer deed needed |
| Charges | Stamp duty applicable | No stamp duty |
When Does Transmission of Shares Apply?
You’ll need to initiate transmission of share under the following circumstances:
- Death of a shareholder
- Bankruptcy or insolvency
- Lunacy or legal disability
- Succession or inheritance by legal heirs
- Shares held in joint names where one holder has passed away
Legal Framework Governing Transmission of Shares
In India, the process is governed under:
- Companies Act, 2013
- SEBI Guidelines
- Depositories Act, 1996
These legal frameworks ensure that the transmission process remains transparent and systematic.
Documents Required for Transmission of Shares
The applicant (legal heir or nominee) must submit a set of documents. These may vary slightly depending on whether the shares are in physical or dematerialized (Demat) form:
For Physical Shares:
- Original share certificates
- Death certificate (notarized or attested)
- Indemnity bond and affidavit
- KYC documents (PAN, Aadhaar, etc.)
- Transmission request form
For Demat Shares:
- Transmission request form (TRF)
- Client master report
- Notarized death certificate
- KYC documents of legal heir
- Nominee’s or heir’s Demat account details
Procedure for Transmission of Shares
The steps involved are:
- Submit Application: File a transmission request with the company or Depository Participant (DP).
- Board Approval: In case of physical shares, the Board of Directors passes a resolution approving the transmission.
- Registration of Transmission: The shares are registered in the name of the legal heir or nominee.
- New Share Certificate / Demat Entry: The company issues a new certificate or updates the beneficiary in the Demat account.
Time Frame for Transmission of Shares
As per SEBI guidelines:
- For physical shares, the process should be completed within 21 days from receipt of valid documents.
- For Demat shares, Depository Participants must process the request within 7 days.
At Share Claimers, we ensure swift and accurate completion of the transmission process without delays.
Role of Share Claimers in Transmission of Shares
Handling legal paperwork, verifying documents, and following up with companies can be overwhelming. That’s where Share Claimers steps in.
We assist in:
- Drafting and submitting all necessary documents
- Coordinating with the company’s registrar and DP
- Providing legal support for succession or probate
With our expert guidance, the process becomes smooth, transparent, and hassle-free.
Challenges in Transmission of Shares
Although the law mandates companies to assist in transmission, many legal heirs face roadblocks such as:
- Incomplete documentation
- Disputes among legal heirs
- Delays by company registrars
- Shares held in multiple formats (Demat + Physical)
- Lack of awareness about nominee registration
At Share Claimers, we proactively identify and resolve such challenges to ensure rightful share ownership.
How to Prevent Transmission Issues in the Future
Here are a few preventive tips:
- Always nominate someone in your Demat account.
- Maintain updated KYC and shareholding records.
- In case of physical shares, dematerialize them to avoid paper-based delays.
- Clearly mention heirs in a registered will.
- Consult legal experts like Share Claimers for estate planning.
Conclusion
The Transmission of Shares is a critical legal process that ensures rightful ownership in unforeseen circumstances. While the laws are well-defined, execution can often be complex and time-consuming without professional help.
At Share Claimers, we bring you peace of mind by handling every step of the transmission process with legal accuracy and efficiency. Whether you’re a legal heir, nominee, or executor of a will, we make sure your rights are protected and your shares are secured.
