Transmission of Shares: Complete Process, Documents & Legal Guide

When a shareholder dies or is declared insolvent, the transmission of shares is the legal process that moves ownership to the rightful heir. Unlike a voluntary transfer of shares, transmission operates by law under Section 56 of the Companies Act 2013 — no transfer deed is needed, only valid legal proof.

When Does Share Transmission Apply?

• Death, insolvency, or mental incapacity of the shareholder
• Inheritance through will or statutory succession
• Joint holdings where one holder is deceased

Documents Required for the Transmission of Shares Process

Heirs must submit a death certificate, Succession Certificate for Shares or Probate of Will, specimen signature, and identity proof. Ensure KYC records are updated with the depository. If originals are unavailable, apply for a duplicate share certificate. Physical shares should also undergo dematerialisation per 2025 SEBI mandates.

Step-by-Step Share Transmission Process

Submit documents to the company’s RTA or depository participant. If shares moved to IEPF, file Form IEPF-5 on the MCA portal. Post-approval, unclaimed dividends are credited to the Aadhaar-linked account. Heirs can claim shares or dividends from IEPF with expert help. Completion typically takes 30–60 days.

Common Challenges and How to Avoid Them

Outdated records are the top reason for delays. Keep your registered address and signature on record current before filing. Investors without a nominee should add a nominee to their investments now to simplify future claims. With accurate documents and expert guidance, the transmission of shares can be resolved smoothly. Infiny Solutions supports legal heirs at every step.

Frequently Asked Questions

What is transmission of shares under the Companies Act 2013?

It is the involuntary transfer of share ownership by law — triggered by death, insolvency, or a court order under Section 56. No transfer deed is required.

Who can apply for share transmission?

Legal heirs, registered nominees, or statutory successors. Without a nominee, a Succession Certificate or Letters of Administration is mandatory.

How long does the share transmission process take?

Companies must complete transmission within 30 days of valid document receipt. IEPF-related claims may take up to 60 days.

What if the original share certificates are lost?

Apply for a duplicate share certificate first, then initiate transmission alongside dematerialisation of shares.