Share transfer in India refers to the process of transferring ownership of shares from one entity or
individual (transferor) to another (transferee) as per the provisions of the Companies Act, 2013, and the
Articles of Association of the company. Shares are considered movable property, and their transfer is
governed by legal frameworks designed to ensure transparency, legality, and protection of stakeholders’
interests.

The process typically begins with the transferor and transferee executing a share transfer deed, which
details the terms of the transfer, including the number of shares, price (if any), and consideration
involved. The deed must be stamped in accordance with stamp duty regulations and signed by both
parties. Subsequently, the transferor surrenders the share certificates to the company along with the
executed transfer deed, notifying the company of the transfer.

Upon receipt of these documents, the company’s board of directors reviews and approves the transfer,
ensuring it complies with statutory requirements and the company’s internal policies. The company then
updates its register of members, noting the transfer of shares in the transferee’s name. If applicable, the
company issues new share certificates to the transferee to reflect their ownership.

It’s important to note that certain restrictions may apply to share transfers, such as pre-emption rights
or restrictions specified in the company’s Articles of Association or shareholders’ agreements.
Additionally, transfers of shares in listed companies are subject to regulations imposed by stock
exchanges and market regulators to maintain market integrity and investor protection.
Overall, share transfer in India plays a critical role in facilitating liquidity and ownership changes within
companies while ensuring compliance with legal and regulatory frameworks that safeguard the interests
of shareholders and maintain the integrity of corporate governance.