What is a Balance Share Certificate? Meaning

What is a Balance Share Certificate?

Balance Share Certificate means a share certificate issued by the company to its shareholder (investor) for the balance number of shares held by him after selling/transferring a part of his shareholding.

The shareholder has to submit to the company a request letter and securities transfer form along with the old share certificate(s) and other supporting documents to enable the company to process his request and issue a balance share certificate.

Only after receipt of the above all documents, the company cancels the old certificate and issues a fresh certificate (which is called balance share certificate) for the balance number of shares.