Share Transfer

Share Transfer When shares are bought on the stock exchange, the broker will in course of time, give the buyer the certificates along with share transfer forms. These forms will have the transferors’ attested signature. The buyers of the shares, the transferee, will then have to fill in these forms, affix share transfer stamps (1/2% of the market price of the shares on the date of application or the last quoted price), and sent the certificates for registration in the buyer’s name. Sometimes the company’s share transfer department will do it, sometimes data processing firms are engaged. If a transferee doesn’t know the name of the transfer agent, he should send the shares to the registered office of the company. The act of transfer is done with varying degrees of efficiency, from total negligence to reasonable promptness. When one sells shares, the broker will supply share transfer forms, one for each certificate, which have to be filled in at the appropriate places (transferor’s name or names in full, as appearing on the share certificate, transferor’s signature in accordance with that maintained in the company’s folios signature and address of a witness – the best being the stockbroker) and handed over to the broker along with the share certificates. The transferee should note one important point. The transfer form must be lodged with the company or its transfer agents within one year of the date of issue of the form. The date is stamped on top of the transfer form. Also, but the broker will tell you this, the transfer must be lodged will in time for dividends, rights, or bonus issues. In view of the fact hat at any time there is a larger number of fake or stolen share certificates in circulation, an investor must make if a point to deal with authorized brokers only, and ensure that the transfer form has been stamped with the firm’s name at the back. The certificate itself may have been forged, or the transferor’s signature may have been. In either case the broker will sort it out, if he is a genuine broker, and not a sub – or sub – sub – broker. For lodging a fake certificate or a forged transfer form, he investor can be held criminally responsible.

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