Transfer shares
A shareholder wants to sell. Is that an allotment?
The short answer
A physical transfer is SH-4, stamped, and then registered by the company. The Registrar does not receive SH-4. A demat transfer never uses SH-4. It moves through the depository.
Shares already issued. An allotment of new shares is PAS-3, not this.
VerifiedAct-sourced — Sections 56 and 58.
Step by step
1
Read the articles
A private company restricts transfer. The board accepts or refuses as the articles and section 58 allow.
2
SH-4, stamped
Transferor and transferee sign. Stamp is the stamp law, not an MCA fee. An unstamped deed is not registered.
3
The register
The company enters the transferee in the register of members. That entry is what makes the person a member. The Registrar does not receive SH-4.
4
Demat
If the shares are in a depository, the delivery instruction replaces SH-4. Do not look for this form on the portal.
Forms
- SH-4 — Lodged with the company. Not an ROC e-form.
Papers
- SH-4, if the shares are physical
- Share certificate, or the depository instruction
- Board resolution where the articles require acceptance
Where this filing fails
- PAS-3 is the wrong form. A transfer does not increase capital.
- Stamp is not an MCA fee. The rate sits in the stamp law.