Share transfer - Registration of ‑ Refusal to register transfer of shares on grounds that signatures do not tally - Companies Law - No. 3/1993,

Circular : No. 3 of 1993, dated 22 ‑ 3 ‑ 1963. Subject:- Share transfer - Registration of ‑ Refusal to register transfer of shares on grounds that signatures do not tally It has been brought to the notice of this Department that certain companies are returning instruments of transfer without effecting transfer of shares in the names of transferees on frivolous grounds, inter alia, that the specimen signatures of transferors do not tally with that on record, in spite of the fact that the transfer forms bear attestation of the magistrates, etc. In this connection, it may be stated that as per instructions below the prescribed share transfer form (No. 7B). attestation, where required, of thumb impression, marks, signatures, etc., should be done by a magistrate, notary public or special executive magistrate or a similar authority holding a public office or a member of a recognised stock exchange through whom the shares are introduced or a member of the transferor s bank . Further, the guidelines for good or bad delivery issued by the Ministry of Finance, Department of Economic Affairs, vide their Circular No. 1/10/SE/83, dated 21‑7‑1983 also provide a similar requirement. You are, therefore, requested to advise your constituent member companies to follow the aforesaid instructions scrupulously and to effect transfer of shares within the period prescribed under section 113 of the Companies Act, 1956, and the listing guidelines.