A Complete Guide for Transmission of Shares in India

Inheriting shares from a family member is a significant responsibility. Many Indians own shares in companies across the country. When they pass away, their shares need legal transfer. This process is called transmission of shares.

Transmission differs from regular share sales. It’s the legal mechanism that transfers ownership automatically. It happens under India’s succession laws. The government recognizes your rightful claim to inherited shares.

Understanding share transmission protects your inheritance. It prevents your shares from being locked away. It ensures smooth ownership transfer within your family. It saves you from legal complications.

This blog acts as a guide that explains everything you need to know. You’ll discover what transmission means legally. You’ll learn the exact requirements in India. You’ll understand the complete step-by-step process.

Many people attempt transmission alone. They face rejection from registrars. They miss critical documentation. They experience unnecessary delays.

Infiny Solutions specializes in share transmission: the expert team guides families through every step. They handle complex cases involving multiple legal heirs. They ensure your inheritance transfers smoothly and quickly.

Let’s explore how to claim your rightful shares.

Transmission of Shares: An Overview

When a shareholder in India passes away or faces insolvency, their shares don’t simply disappear. Instead, ownership passes automatically to the legal heirs or representatives. This automatic procedure is known as the transmission of shares.

Transmission of shares is governed by clear rules under the Companies Act, 2013. The law ensures rightful ownership moves to the next eligible person. This isn’t optional. If a family member with shares in India dies, the law steps in. Shares get transmitted by operation of law, not by a sale or gift.

Most commonly, transmission of shares happens after someone’s death. In some cases, it is triggered by bankruptcy, lunacy, or the dissolution of a company. The legal heirs or nominated persons need to provide the necessary documents. Only then does the company register the share transmission process in India.

There is no need for a transfer deed in transmission. No buying or selling is involved. No payment changes hands. The main focus is legal succession and inheritance. Transmission ensures succession rights are protected.

Understanding the process of transmission of shares helps prevent shares from being locked or lost. It also protects your rightful inheritance in India. If handled correctly, the transmission of shares is a smooth transition.

Transmission vs Transfer of Shares: Key Differences

Both transmission and transfer of shares change share ownership in India. However, the transmission vs transfer of shares debate is still a hot one. Their legal origins and requirements differ sharply. Understanding these differences helps you select the right process when the need arises.

Transmission of shares is an involuntary process. It occurs automatically due to events like death, bankruptcy, or mental incapacity. The law, not the shareholder, initiates transmission. Legal heirs or a court-appointed receiver claim shares with the required documents.​

Transfer of shares is a voluntary act. It happens when a shareholder chooses to sell or gift shares to someone else. Both parties execute a transfer deed, and stamp duty must be paid. Transfer involves a mutual agreement and usually a payment.​

Stamp duty does not apply to share transmission. In contrast, transfer of shares requires stamp duty as per the Indian Stamp Act. For a share transfer, an official deed is mandatory. For transmission, companies require proof like death certificates or court orders.​

Transmission of shares keeps original liabilities intact. But once a transfer is complete, the transferor’s liabilities end. The company updates its register once the required documents are verified. Transfer also needs company approval, but documents differ.

Legal Requirements for Share Transmission in India

Core Documents Needed

The transmission of shares process in India demands several key documents. The core legal requirements for share transmission in India include:

A duly signed transmission request form. You must submit this to the company or its registrar. Add the original death certificate of the shareholder, or a notarized copy.​

If the shareholder nominated someone, only basic documents are required. Typically, this includes a copy of the nominee’s PAN card and the original share certificate. For shares without nomination, things get more complex.

Heir Documentation

Heirs must provide an indemnity bond. For low-value claims (up to ₹5 lakhs), a No Objection Certificate (NOC) from all legal heirs may be necessary. For claims beyond ₹5 lakhs, a succession certificate, letter of administration, or probate of will is mandatory. These legal documents establish the right to claim the shares.​

Regulatory Compliance

Section 56 of the Companies Act governs share transmission in India. Failing to submit proper documents can result in delays or penalties. Always keep copies of your submission for reference.

Proper documentation streamlines the transmission process and protects succession rights.

Step-by-Step Share Transmission Process in India

• Step 1: Notify the company or Registrar and Transfer Agent (RTA) about the shareholder’s passing or the event triggering transmission.
• Step 2: Gather all required documents, such as the death certificate, succession certificate, or nomination form.
• Step 3: Submit the transmission request form along with these documents.
• Step 4: The company or RTA will verify your documents. If everything is in order, they will approve your request.
• Step 5: Shares are transferred to the rightful heirs and ownership is updated in the company’s records.

This process ensures legal succession for shareholders in India.

Common Challenges and How to Overcome Them

Transmission of shares in India often faces hurdles. Incomplete documentation is the most frequent barrier. Missing death certificates or succession papers lead to rejections and delays. Disputes among legal heirs can stall the process. Unclear nomination complicates claims. Legal timelines also add pressure, especially when approvals take time.

To overcome these challenges, maintain organized records. Communicate clearly among all heirs. Seek professional help when disputes arise or documents are missing. Submitting accurate and complete paperwork from the beginning ensures a smoother transmission process and reduces delays.​

Infiny Solutions: Share Transmission Made Easier

Navigating the transmission of shares in India can feel overwhelming. That’s where Infiny Solutions comes to your aid: we bring clarity and confidence to every step you take.

At Infiny Solutions, our experienced team handles your documentation with precision and care. We communicate directly with companies and registrars on your behalf. If your shares involve multiple legal heirs or joint holdings, we ensure every aspect is managed professionally.

We keep our process transparent, guiding you from the first inquiry to the final transfer. At Infiny Solutions, we believe your rightful assets should be recovered without stress or confusion. Our mission: to simplify legal complexities, resolve challenges, and let you unlock your wealth with ease.

Ready to take the next step? Reach out and let us help.

Unlock Your Share Transmission Legacy with Infiny Solutions

Safeguarding inherited wealth is more than a legal process; it’s a pathway to securing your family’s future. Infiny Solutions understands the importance of every share you recover.

Whether you encounter legal hurdles or complex documentation, our experts help you at each step. We turn daunting transmission procedures in India into smooth journeys. Our transparent guidance ensures your rightful ownership is never out of reach.

The right time to act is now. Let Infiny Solutions make your transmission of shares seamless and secure. Connect with us to unlock your rightful legacy today.