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What is the difference between the Transfer and Transmission of Shares

Transfer of Shares is the process of transferring ownership to the transferee. In other words, it is a voluntary act of transferring shares from one person to another. On the other hand Transmission of Shares takes place when someone dies and the ownership is transferred under the supervision/operation of the Inheritance Laws in India

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What is the difference between the Transfer and Transmission of Shares

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  1. What is the difference between the Transfer and Transmission of Shares? Transfer of Shares is the process of transferring ownership to the transferee. In other words, it is a voluntary act of transferring shares from one person to another. On the other hand Transmission of Shares takes place when someone dies and the ownership is transferred under the supervision/operation of the Inheritance Laws in India, to the legal heirs of the deceased individual. The fundamental question in the shared field is the difference between the transfer of shares and the transmission of claims. Transfer of Shares Refers to the transfer of ownership of shares from one person to another. It can be made at any time and frequently. It is a voluntary transfer. Requires completion of a stock transfer form and payment of any applicable stamp duty. Can be made by an individual or a legal entity. The transferor must hold a valid title for the shares. The transfer is subject to compliance with the provisions of the Companies Act and SEBI regulations. ● ● ● ● ● ● ● Transmission of Shares Refers to the transfer of ownership of shares due to the death or incapacity of the current shareholder. Occurs due to the death or incapacity of the shareholder. It is an involuntary transfer governed by the law of inheritance. Requires a court order in form of Succession Certificate / Probate of Will / Letter of Administration or a Surviving member certificate / legal heir certificate depending upon case to case. ● ● ● ●

  2. Is usually made by the legal heirs or executors of the deceased shareholder or by a court-appointed guardian for a shareholder who is incapable of acting. The acquirer must prove his relationship to the deceased or incapacitated shareholder. The transfer is subject to compliance with the provisions of the Companies Act and the SEBI regulations and the laws of succession / inheritance as applicable. ● ● ● Transmission of share

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