Transfer of Shares: Understanding ITC Share Transfer Process

Why do people invest in shares? What’s the biggest reason?

We all know this answer, it’s basically for getting enhanced investment returns. But do you know that transfer of shares can be a strategic move to achieve this aim? Although this process is well known to the shareholders, they are not fully aware of its potential.

Share transfer allows you to reallocate your portfolio and provides you with chances to tap into new markets and sectors, which boosts your financial position.

Let’s look at the share transfer process of ITC Ltd.

As of February 2025, the market capitalization of ITC is approximately $58.15 billion USD.  

So, investors, who are willing to tie knots with this market-leading company must gain enough information about the share transfer process of this company.

What is Transfer of Shares?

The process of transferring ownership of a share from one shareholder to another is called the transfer of shares. Generally, a new share certificate is issued by the company, which reflects the change of ownership, and it is given to the new owner.

Shares are bought by people as an important investment. They sold it to gain profit. At the time of buying/selling the shares, the transfer process becomes essential. Not only this, shares often need to be transferred for various reasons. No matter what the reason is, when someone decides to give their shares to someone else, he or she must follow the process of shares transfer.

There are several reasons behind the share transfer process, such as inheritance, gift, sale, etc. The initial step is to fill out a deed and pay the applicable stamp duty.

At present, the share count of ITC Ltd is 12.51 billion, which has seen a modest year-over-year increase of 0.17%. 

This statement is enough for understanding the scale of share distribution and availability of transfer. In the next part, we will explore the share transfer process of ITC Ltd.

Types of Share Transfers 

Public Share Transfer: In India, different channels are used to do this. The common method is stock market transactions, which fosters a seamless share transfer between investors, through electronic trading platforms. Almost all major publicly traded companies follow this method.

Private Share Transfer: Unlisted companies follow the method of private transaction, where the share of unlisted companies is transferred through private agreements.

Bonus Shares: There is another process, where additional shares are issued by a company to its present shareholders, without receiving any payment in return.

Repurchase Policy: One of the most prominent types of share transfer is known as the buy-back or repurchase process, in which a company repurchases its own shares from the shareholders to cut down the number of shares in circulation..

Gift / Inheritance: Gifting or inheritance is another process, where shares are transferred as a gift or inheritance.

ESOPs: As a compensation package, shares may be transferred to employees to appreciate their participation.

Merging Or Acquisition: At the time of merging or acquisition, the ownership of shares needs to be changed. In that case, both the involved parties take part in the share transfer process.

Through the share transfer process, only the ownership of shares is changed, while the company itself is not directly involved in the transfer, once the shares are initially issued.

Step-by-Step Process of Transferring Shares 

Each year millions of investors buy ITC shares that are regarded as highly valued in the market. Are you also one among them? Then you must go through the basic steps included in the share transfer process of ITC Ltd.

Signing The Share Transfer Deed 

At first, a share transfer deed should be signed and stamped, according to the current stamp duty regulations.

Submission Of Share Certificate & KYC 

Along with the signed deed, share certificate and essential KYC documents of the transferee and transferor should be submitted.

Processing Of Documents

In the next step, ITC’s registrar and transfer agent will process all the submitted documents.

Verification & Approval 

After the verification, the transfer agent will approve the transfer.

Issue Of New Share Certificate 

In the company’s book, the transfer will be registered and a new share certificate will be issued.

How to Check Shares Transferred to IEPF

If a share remains unclaimed for more than seven years, it is generally transferred to the IEPF. Anyone can check if his or her shares have been transferred to the IEPF. To know How to check shares transferred to IEPF stay tuned with us.

First, you must visit the official website of IEPF and go to the section labeled ‘IEPF Services’. To check the status of shares, select the option and enter the necessary details like folio number, DP ID, name, etc. Then you can see the status of the share, and even reclaim it, if it is already transferred to the IEPF.

Common Challenges in Share Transfer 

Are you about to transfer your shares? It may sound simple, but the process isn’t like a cakewalk. The process includes numerous twists and turns. To keep things on track, you must be aware of the common challenges related to this process of the transfer of shares.

The most common problem is the extensive paperwork, which demands a very long time. There are always chances of mistakes in the share certificates or other important documents. Sometimes, confusion is created, due to the unclear ownership of the shares.

There are several rules and taxes associated with the process of share transfer. Navigating through these rules may seem to be complicated. Determining the value of shares may be a challenge, especially in the absence of a clear market price.

Why Choose Infiny Solutions for Share Transfer?

Infiny Solutions is a leading financial service provider in India, which can provide you with exceptional help, especially in the share transfer process.

• We are experts in assisting investors with a seamless share transfer procedure.
• Our experienced professionals guide our clients through the complexities of documentation.
• We are quite knowledgeable about regulatory compliance to make the transfer process less complicated.
• We give our clients a hassle-free solution to help them to transfer their assets and claim their dividends.
• We guide our clients in regaining control over their investments.
• We are adept at safeguarding your financial future and to ensure a streamlined share transfer process.

Conclusion

In the modern financial landscape, the transfer of shares has become a vital process. It can impact your investments significantly. To avoid any kind of complications during the process of share transfer, you should always stay informed.

Transfer of shares is as tough as solving a puzzle.  You should keep patience, pay attention to the details, and be aware of the relevant rules, to make it easy. So, what is your next move? Don’t hesitate to ask for help from Infiny Solutions.