WHAT IS TRANSMISSION OF SHARES ?
Transmission of shares is the legal process by which the ownership of shares is transferred by operation of law, typically occurring when a shareholder dies and his/her legal heirs claim the holdings.
THE LEGAL DOCUMENTS ON CASE TO CASE BASIS NEEDED FOR TRANSMISSION OF SHARES ARE:
- Succession Certificate
- Probate of Will/ Will
- Letter of Administration
- Decree or Order of any Court or Tribunal
- Decree or Order of any Court or Tribunal
ESSENTIAL STEPS IN RECOVERY OF SHARES IN CASE OF TRANSMISSION:
- Obtain the death certificate of the original shareholder, which is mandatory to start the process.
- Identify and verify the legal heirs or beneficiaries using documents such as a succession certificate, probate of will, or legal heir certificate as applicable.
- Gather KYC documents of claimants (PAN, Aadhaar), along with original share certificates and bank account proofs. In case original certificates are lost, apply for duplicates.
- Complete and submit the Transmission Request Form and required legal documents to the company’s share department or its Registrar and Transfer Agent (RTA).
- The company or RTA will verify the documents and authenticity of claims before their Board approves the transmission.
- Once approved, the shares are transferred to the claimant’s name, and records are updated accordingly.
- Payment of any applicable stamp duty must be ensured, as per local regulations.
- In case shares are already transferred to IEPF, heirs must file Form IEPF-5 on the MCA site and submit supporting documents to both the company and IEPF authority, after which the shares will be credited to the claimant’s demat account upon approval
