Transmission of shares at times is hugely cumbersome and runs into many legal complications. We help our clients by providing services relating to the entire range of transmission of shares.
Transfer vs Transmission — Know the Difference
One of the widely-experienced problems is not to find out the difference between transfer and transmission of shares. The Companies Act clearly distinguishes them:
- Transfer of shares relates to a voluntary act of the shareholder — usually a sale or gift.
- Transmission of shares is brought about by the operation of law — typically on the death of a shareholder, or in cases of insolvency or lunacy.
- Unlike a transfer, in case of transmission the shares are transferred without any consideration.
- Transmission takes place on the basis of a will, succession certificate, or other legal instrument.
When is Transmission Needed?
- Death of a sole shareholder (shares pass to legal heirs or the person named in the will)
- Death of one joint holder (shares pass to the surviving joint holder)
- Insolvency of the shareholder (shares vest in the Official Assignee)
- Lunacy declared by court (shares vest in the Committee of the Lunatic)
Documents Typically Required
Death certificate of the deceased
Original share certificates
Transmission request form
PAN & Aadhaar of legal heirs
Legal heir certificate OR Succession certificate
Notarised copy of will (if applicable)
Probate / Letter of Administration (if required)
Affidavit & Indemnity bond
NOC from other legal heirs
KYC of the claimant
Our Transmission Process
- Case Assessment — Review the will (if any), family structure, and existing documents.
- Legal Instrument — Depending on the case, help obtain succession certificate, probate, or letter of administration.
- RTA Filing — Submit the transmission request with the company's Registrar & Transfer Agent.
- Verification & Follow-up — Coordinate document verification, respond to queries.
- Transmission Complete — Shares are transmitted to the rightful heir's demat account.
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