What is Share Transmission?
Share transmission is the legal process of transferring ownership of shares due to the demise or incapacitation of a shareholder, without involving a sale. In cases of the shareholder’s death or due to inheritance laws, shares are passed to the legal heirs or nominated individuals. Share transmission ensures that rightful beneficiaries can take ownership of the shares with minimal legal obstacles.
Process for Share Transmission
The process of share transmission involves specific legal and documentation requirements.
Here’s a step-by-step breakdown:
Key documents for share transmission typically include the death certificate of the deceased shareholder, a succession certificate or probate of the will (or a legal heir certificate, depending on the case), identity proofs, and other KYC documents of the inheritors.
The inheritors must submit a formal transmission request application to the company’s RTA, along with all the required documents, including the original share certificate (for physical shares) or a statement of holding (for demat shares).
In some cases, the RTA may ask for an indemnity bond or affidavit to protect the company from any future claims, especially if there are multiple claimants or legal complexities.
The RTA verifies the documents and checks for any discrepancies. If everything is in order, they proceed with the transmission process, either issuing a new Share the certificate with the legal heirs or update the demat account records.
After completing the verification, the RTA or DP will issue new share certificates (in physical form) or update the ownership records in the demat account, making the inheritors the rightful owners.
Once the process is finalized, the legal heirs receive confirmation from the RTA, with updated ownership reflected in either physical share certificates or the demat account holdings.
Why Choose Us for Share Transmission?
Choosing a knowledgeable and experienced service provider is essential for a smooth and successful share transmission. Here’s why we are the best choice to handle this sensitive process:
1. Expertise in Legal and Procedural Requirements for Share Transmission
○ With in-depth knowledge of inheritance and transmission laws, we ensure that
your share transmission process complies with all legal and procedural standards, avoiding unnecessary delays.
2. Comprehensive Document Assistance
○ Our team helps you gather and prepare all necessary documentation, including death certificates, succession or legal heir certificates, and indemnity bonds. We provide full support to ensure that your documents are complete and correct.
3. Effective Handling of Complex Situations
○ In cases with multiple heirs or missing documents, we manage these complexities with professionalism, ensuring the process moves forward as efficiently as possible.
4. Reliable Liaison with RTAs and DP Authorities
○ Our strong relationships with Registrars and Transfer Agents (RTAs) and Depository Participants (DPs) allow us to expedite the process and resolve any follow-up issues quickly, ensuring prompt and hassle-free share transmission.
5. Transparent Communication and Personalized Support
○ We keep you informed throughout each step of the transmission process,
ensuring you understand the progress and status of your case. Our client-focused approach guarantees that your concerns are addressed with empathy and professionalism.