{"id":962,"date":"2019-09-27T13:07:28","date_gmt":"2019-09-27T13:07:28","guid":{"rendered":"https:\/\/rta.saginfotech.com\/blog\/?p=962"},"modified":"2026-03-25T07:19:26","modified_gmt":"2026-03-25T07:19:26","slug":"transfer-and-transmission-shares","status":"publish","type":"post","link":"https:\/\/rta.saginfotech.com\/blog\/transfer-and-transmission-shares\/","title":{"rendered":"Do You Really Know About Difference Between Share Transmission &#038; Share Transfer?"},"content":{"rendered":"\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2026\/03\/know-about-difference-share-transmission-share-transfer.mp3\"><\/audio><\/figure>\n\n\n\n<p>The transfer is something where an asset is being moved. This movement can be a physical movement of an asset and\/or a movement in the ownership of the title of the asset. Now, in the case of securities, it can be voluntary or mandatory by law. Share transfer is a voluntary act initiated by the shareholder and occurs through a contract.<\/p>\n\n\n\n<p>Now, if we talk about share transmission, then the transmission of shares is a bit different; it takes place due to the provisions of the law on the death of the shareholder or in the event where the holder becomes bankrupt or lunatic. Now, let\u2019s look at the conceptual difference between the transmission of shares <span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">and the<\/span>&nbsp;<strong>transfer of shares<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What does Transfer of Shares Mean?<\/strong><\/h2>\n\n\n\n<p>When the intentional transfer of title of the asset or share occurs between the transferor and the transferee, it is known as the transfer of the share. Here, the transferor is the one who transfers, and the transferee is the one who receives the ownership.<\/p>\n\n\n\n<p>Only if a public company disallows the transfer of its shares for some valid reason can its shares not be transferred; otherwise, they can be transferred freely. Now, if we talk about private companies, then the shares of a private limited company can\u2019t be transferred except in some cases. However, a transfer deed is required for the transfer of shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What does the Transmission of Shares Mean?<\/strong><\/h2>\n\n\n\n<p>As we stated above, transmission of shares takes place as per the provisions of law. So, if the holder does not live longer or has become insane or insolvent, then the transmission of shares will be done. Even if a company is the holder of the shares, it may fail to survive.<\/p>\n\n\n\n<p>There is no need to execute the transfer deed, and the transferee (one who receives) will receive rights of the shares, and the transmission will be only recorded when the transferee presents proof of entitlement to the shares.<\/p>\n\n\n\n<p>In case of the death of the shareholder, it will be transferred to a legal representative, and in case of bankruptcy, it will be transferred to the official assignee.<\/p>\n\n\n\n<p>The following table will shed more light on the difference between the transfer and transmission of shares<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"720\" height=\"346\" src=\"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2020\/12\/difference-between-transmission-and-transfer-of-shares.jpg\" alt=\"Difference Between Transmission and Transfer of Shares\" class=\"wp-image-1493\" srcset=\"https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2020\/12\/difference-between-transmission-and-transfer-of-shares.jpg 720w, https:\/\/rta.saginfotech.com\/blog\/wp-content\/uploads\/2020\/12\/difference-between-transmission-and-transfer-of-shares-300x144.jpg 300w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/figure>\n\n\n\n<p>While we are talking about <strong>Transfer and Transmission of Securities,<\/strong> let\u2019s take a look at the concerning provisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Provisions Under the Companies Act, 2013 and Companies (Share Capital &amp; Debenture) Rules, 2014<\/strong><\/h3>\n\n\n\n<p>According to Section 56 of the Companies Act, 2013, read with Rule 11 of Companies (Share Capital &amp; Debenture) Rules, 2014<\/p>\n\n\n\n<p><blockquote class=\"wp-block-quote\"><p><strong><em>Read Also: <\/em><\/strong><a rel=\"noreferrer noopener\" aria-label=\"Shares and Debentures: Similarities &amp; Dissimilarities (opens in a new tab)\" href=\"https:\/\/rta.saginfotech.com\/blog\/shares-and-debentures-similarities-and-dissimilarities\/\" target=\"_blank\"><strong><em>Shares and Debentures: Similarities &amp; Dissimilarities<\/em><\/strong><\/a><\/p><\/blockquote><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Definition: <strong>Transfer of Shares<\/strong><\/h4>\n\n\n\n<p>This will come into action only when a proper instrument of transfer, in <strong>Form SH-4<\/strong>, as addressed in sub-rule 1 of Rule 11 (Share Capital and Debentures) of Companies Rules, 2014, is duly stamped, dated, and it is executed by or on the account of the transferor and the transferee and stipulates all the necessary details such as name, address, and occupation, if any.<\/p>\n\n\n\n<p>It needs to be represented in front of the company by either participant within 60 days from the date of execution, and it also needs to have a certificate of securities or a letter of allotment of available securities.<\/p>\n\n\n\n<p>If the transferor applies to the transfer of partially paid shares, then notice of application will be given to the transferee by the company in Form SH-5 as described in sub-rule 3 of Rule 11 (Share Capital and Loan) Rules 2014 of the Companies Rules 2014. And the transferee should have no objection to the transfer within 2 weeks from the date of receipt of the notice.<\/p>\n\n\n\n<p><div class=\"sagrta-box\">\n<h2>Dedicated SAG RTA Team to Handle Client Transactions and Queries <\/h2>\n<p>Appoint SAG RTA as Your RTA Service Provider Now<\/p>\n<a href=\"#\" data-toggle=\"modal\" data-target=\"#exampleModal\" rel=\"noopener noreferrer\" class=\"download-free-btn\">Appoint RTA Agent Now<\/a>\n<\/div><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"> Definition: Transmission of Shares<\/h4>\n\n\n\n<p>This will come into action when the application for transmission of shares, along with related documents, is found valid. And there is no need to execute the transfer deed.<\/p>\n\n\n\n<p>Transmission of shares requires the following documents<\/p>\n\n\n\n<ul>\n<li>Death Certificate\u2019s Certified Copy<\/li>\n\n\n\n<li>Copy of PAN (Self-Attested)<\/li>\n\n\n\n<li>Succession certificate\/ Will\/ Probate of Will\/Letter of Administration\/ Court Decree<\/li>\n\n\n\n<li>Specimen signature of the successor<\/li>\n<\/ul>\n\n\n\n<p><strong>Deadline for Delivery of a Certificate in Both Cases<\/strong><\/p>\n\n\n\n<p>In case of <a href=\"https:\/\/rta.saginfotech.com\/rta-services\">transfer of shares, Certificates of all securities<\/a> should be transferred or transmitted within one month from the date of receipt of the instrument of transfer by every company or intimation of transmission notice as applicable, unless restricted by any provision of law or by any tribunal or court order or order by any other authorities.<\/p>\n\n\n\n<p><strong>Penalty for Non-Compliance<\/strong><\/p>\n\n\n\n<p>In the event of any omission in compliance with the above, the penalty on the company shall not be less than \u20b9 25,000, but may increase up to \u20b9 5,000,000, and every officer of the company who is in default shall be punishable with a penalty of less than \u20b9 10,000, which can also be increased up to \u20b9 1,00,000.<\/p>\n\n\n\n<p>While these two are meant to change the ownership of title to the shares, the major <strong>difference between the transfer and transmission of shares<\/strong> is the fact that the transfer of shares is voluntary, and can be initiated by a transfer or transferor. While the transmission of shares is in accordance with the provisions of the law, it may be initiated by a legal representative or receiver.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post, you will learn the basic and important difference between transfer and transmission  in the firm. You will also get information about which option is better for whom<\/p>\n","protected":false},"author":1,"featured_media":969,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do You Really Know About Difference Between Share Transmission &amp; Share Transfer?<\/title>\n<meta name=\"description\" content=\"Here we have brought the complete difference within the two most common terms in the shares. 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