India:
Procedure Of Transfer Of Shares During M&A
02 October 2019
Singhania Secretarial Consultancy LLP
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Private Limited Company – Transfer Title to Shares
Q1) What is the procedure to transfer shares of a
company?
The share transfer deed, duly stamped, is required to be
executed both by the transferor and the transferee and delivered to
the company along with the share certificates. The company will
approve the transfer of shares and record the transfer in its
registers and endorse the transferee details on the share
certificate, and return it to the transferee. Where shares are held
in dematerialized form, the delivery instruction slip, relating to
shares, signed by the transferor is required to be deposited with
Depository Participant where transferee is maintaining his de- mat
account. Thereafter, shares will be credited in the de-mat account
of the transferee.
Share & Asset Sales Timetable
Q2) Is there any statutory time limit
to complete sale of shares or assets?
The time frame for sale of asset and shares entirely depends on
the parties and the complexity of the transaction.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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