Legal Regime Over Transfer Of Corporate Securities- Electronic And Manual Modes
LEGAL REGIME OVER TRANSFER OF CORPORATE SECURITIES- ELECTRONIC AND MANUAL MODES
INVESTMENT AND COMPETITION LAW PROJECT
SUBMITTED BY:
MANSUMYER SINGH
A3211110009
SEC-A; B.A.LLB
SEM-8
CONTENTS
INTRODUCTION……………………………………………………………………………1
DEPOSITORIES ACT 1996………………………………………………………………2
MODES OF TRANSFER OF CORPORATE SECURITIES………………………..6
1. ELECTRONIC MODES…………..…………………………………………………………..6
DEMAT………………………………………………………………………………………….6
AGENCY IN DEPOSITORIES…………………………………………………………….9
PROCESS OF DEMATTING SHARES………………………………………………..10
SEBI GUIDELINES…………………………………………………………………………11
2. MANUAL MODES…………………..……………………………………………………………….……..12
CONCLUSION………………………………………………………………………………14
INTRODUCTION
Transfer of securities mean that the company has recorded in its books, a change in the title of ownership of the securities effected either privately or through an exchange transaction.
To effect a transfer, the securities should be sent to the company along with a valid, duly executed and stamped transfer deed duly signed by or on behalf of the transferor (seller) and transferee (buyer). It would be a good idea to retain photocopies of the securities and the transfer deed when they are sent to the company for transfer. It is essential that you send them by registered post with acknowledgement due and watch out for the receipt of the acknowledgement card. If you do not receive the confirmation of receipt within a reasonable period, say within 2 months, you should immediately approach the postal authorities for confirmation. Please note that, postal authorities will be able to provide confirmation only if you approach them within 3 months.
Sometimes, for your own convenience, you may choose not to transfer the securities immediately. This may facilitate easy and quick selling of the securities. In that case you should take care that the transfer deed remains valid. However, in order to avail the corporate benefits like the
INVESTMENT AND COMPETITION LAW PROJECT
SUBMITTED BY:
MANSUMYER SINGH
A3211110009
SEC-A; B.A.LLB
SEM-8
CONTENTS
INTRODUCTION……………………………………………………………………………1
DEPOSITORIES ACT 1996………………………………………………………………2
MODES OF TRANSFER OF CORPORATE SECURITIES………………………..6
1. ELECTRONIC MODES…………..…………………………………………………………..6
DEMAT………………………………………………………………………………………….6
AGENCY IN DEPOSITORIES…………………………………………………………….9
PROCESS OF DEMATTING SHARES………………………………………………..10
SEBI GUIDELINES…………………………………………………………………………11
2. MANUAL MODES…………………..……………………………………………………………….……..12
CONCLUSION………………………………………………………………………………14
INTRODUCTION
Transfer of securities mean that the company has recorded in its books, a change in the title of ownership of the securities effected either privately or through an exchange transaction.
To effect a transfer, the securities should be sent to the company along with a valid, duly executed and stamped transfer deed duly signed by or on behalf of the transferor (seller) and transferee (buyer). It would be a good idea to retain photocopies of the securities and the transfer deed when they are sent to the company for transfer. It is essential that you send them by registered post with acknowledgement due and watch out for the receipt of the acknowledgement card. If you do not receive the confirmation of receipt within a reasonable period, say within 2 months, you should immediately approach the postal authorities for confirmation. Please note that, postal authorities will be able to provide confirmation only if you approach them within 3 months.
Sometimes, for your own convenience, you may choose not to transfer the securities immediately. This may facilitate easy and quick selling of the securities. In that case you should take care that the transfer deed remains valid. However, in order to avail the corporate benefits like the
Bibliography: Taxman,Company Law & Practice, Majumdar A K. & Dr. Kapoor G. K.,Taxman Publication Pvt. Ltd., (2003) Ramaiya A., Guide to Company Law, 16th Edn., Wadhwa Publication. Singh Avtar, Company Law, 13th Edn., Eastern Book Company, Lucknow, 2001. www.sebi.gov.in www.legalservices.com www.scconline.com