SUBSCRIBE(free)-Daily Updates (Click Verification Link Received in Your Email)
Re-validation of Share Transfer Deed / Form
Provisions under the new Companies Act 2013:
Under the new companies act 2013 there is no provision of Re-validation of Share Transfer Deed / Form. It is not possible to re-validate a securities transfer form after the expiry of 60 days from the date of execution of the share transfer form.
Provisions under the old Companies Act 1956:
A transfer deed used for transfer of shares
is valid for a certain period of time, within which the duly executed transfer
deed has to be delivered to the company or share transfer agent of that company for further
processing of the transfer of shares by the company.
If the time period is expired, the company
have full right to not to entertain the transfer.
Therefore, in order to facilitate the
shareholder the successful transfer of the shares on the base of that same
expired transfer deed, section 108(1D) gives an option to the shareholder to re-validate the expired transfer deed for another 30 days period.
Process of revalidation: To revalidate the transfer deed, one has to
make necessary payments through MCA portal entering the details of the transfer, take the challan copy of the
payment and submit it to the respective ROC along with the share certificate
for revalidation. Generally within a period of day or two the ROC returns the
transfer deeds with revalidated stamps on it.
Once the revalidation of the expired transfer
deed is done, it should be sent to the Company or the RTA within one month.
What other option you can adopt to avoid
revalidation.: If you are thinking about some other way out
through which the same transfer can happen without going for revalidation process, then another way would be to once
again execute a fresh transfer deed with the transferor. But the only demerit of this option is once again the stamp duty has to be paid.
The above suggestion would be advisable for transfers
involving small consideration only.