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Balance Share Certificate : Meaning & Definition

What is a Balance Share Certificate?

Balance Share Certificate means a share certificate issued by the Company to its shareholder (investor) for the balance no. of shares hold by him after selling/transferring a part of his shareholding.

The shareholder has to submit to the company its transfer request letter/form along with the old share certificate to enable the company to process its request and issue balance share certificate.

Only after receipt of the above all documents, the company cancels the old certificate and issues fresh certificate (which is called as balance share certificate) for the balance no. of shares.