Share transfer - Registration of ‑ Bulk lodgement of instrument of transfer of shares/debentures - Companies Law - Circular : No. 15 of 1993,

Circular : No. 15 of 1993, dated 28 ‑ 12 ‑ 1993. Subject:- Share transfer - Registration of ‑ Bulk lodgement of instrument of transfer of shares/debentures I am directed to say that as per the existing procedure, prescribed under section 108of the Companies Act, 1956, the shares/debentures can be transferred only by execution of a transfer deed. In case of bulk handling of transfer deeds, in respect of transactions entered into by the Foreign Institutional Investors (FIIs) registered with SEBI, Public Financial Institutions as defined under section 4A of the Companies Act, 1956 and Mutual Funds (domestic and off‑shore), there is a considerable amount of difficulty in complying with the existing procedure of signing each individual instrument of transfer which may number in thousands, particularly when the transferee is the same. With a view to overcoming these difficulties and simplifying the procedure, the companies are advised to accept transfer deeds executed in such cases in the manner specified below : (i) In respect of bulk transfers where there is a single transferee, the transferee, instead of signing each transfer deed, may fill up and sign a covering transfer deed in the existing prescribed format complete in all respects, enclosing therewith all the related transfer deeds in the prescribed format duly executed by transferors. (ii) The covering transfer deed shall contain, by way of an Annexure, details of distinctive numbers and corresponding certificate numbers of shares/debentures involved in transfer. (iii) The part relating to transferee s particulars in the individual transfer deed (enclosed with the covering transfer deed) need not be signed by the transferee and may be merely stamped with the name and address of the transferee. (iv) Requisite amount of stamps may be affixed on the covering transfer deed or paid in a manner as otherwise prescribed by the Government.