{"id":57549,"date":"2023-06-03T16:00:35","date_gmt":"2023-06-03T10:30:35","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=57549"},"modified":"2024-04-30T16:06:06","modified_gmt":"2024-04-30T10:36:06","slug":"how-to-get-physical-shares-transferred-after-getting-a-succession-certificate","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/","title":{"rendered":"How To Get Physical Shares Transferred After Getting a Succession Certificate?"},"content":{"rendered":"\n<p>A demat account holder may choose to keep their account solely (solo account) or jointly (joint account) with another person. When an account holder dies, the transmission rules are put into effect. Either the joint account holder or the account&#8217;s heirs must get in touch with a depository participant before the transmission of shares can begin. An agent who serves as a liaison between the account holder and his or her account is referred to as a depository participant.&nbsp; A financial institution, bank, or authorized member of the Securities and Exchange Board of India <strong>(SEBI<\/strong>)<sup><a href=\"https:\/\/www.sebi.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup> can act as this agent.<\/p>\n\n\n\n<p>When a person dies, his or her assets and belongings\nare transmitted to the lawful heirs in accordance with inheritance rules. These\nassets may include tangible shares in a company in some situations. You may\nneed to get the actual shares transferred into your name if you inherited them\nfrom a deceased relative. This procedure might be hard and time-consuming, but\nit can be made easier with competent advice. In this post, we will show you how\nto transfer physical shares after receiving a succession certificate.<\/p>\n\n\n\n<p>However, if the account holder&#8217;s shares are held in\nphysical form, each company whose shares the relevant account holder owns needs\nto be contacted. Keep in mind that it typically takes <strong>6 to 12 months<\/strong> to transfer shares across accounts.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#What_Exactly_Are_Shares\" >What Exactly Are Shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#Transfer_Of_Shares_Meaning\" >Transfer Of Shares Meaning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#Accounts_Held_Jointly\" >Accounts Held Jointly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#Account_With_Nomination\" >Account With Nomination<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#Without_A_Nomination_Account\" >Without A Nomination Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#Procedure_For_How_to_Transfer_Physical_Shares_After_Obtaining_a_Succession_Certificate\" >Procedure For How to Transfer Physical Shares After\nObtaining a Succession Certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#After_Receiving_a_Succession_Certificate_You_Must_Take_the_Following_Actions_to_Transfer_Physical_Shares\" >After Receiving a Succession Certificate, You Must\nTake the Following Actions to Transfer Physical Shares:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-physical-shares-transferred-after-getting-a-succession-certificate\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Exactly_Are_Shares\"><\/span>What Exactly Are Shares?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Shares are equity ownership units in a company. Shares exist as a\nfinancial asset for some companies, providing for an equitable distribution of\nany residual earnings, if any are declared, in the form of dividends.\nShareholders of a stock that does not pay dividends<\/p>\n\n\n\n<p>not entitled to a profit distribution. Instead, they\nexpect to profit from the rise in the stock price as the company&#8217;s profits\nrise.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transfer_Of_Shares_Meaning\"><\/span>Transfer Of Shares Meaning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the title to a share is transferred from one\nperson to another, this is referred to as a transfer of shares. Before the\ntransfer of the title of shares is proclaimed legitimate, the firm whose shares\nare being transferred from one person to another should be made aware. Only\nwhen the company&#8217;s registration reflects the change in legal title is the\ntransfer effective and complete.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accounts_Held_Jointly\"><\/span>Accounts Held Jointly<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Securities that belonged to the account holder were\ntransferred to the joint owner of the account upon filing a transmission form.\nA death certificate serving as proof of the account holder&#8217;s demise must also\nbe provided. The joint partner must create a separate account with a depository\nparticipant in order to receive the shares, so that they have a place to receive\nand keep their transferred shares. It is important to take care to spell the\nperson&#8217;s name consistently across both accounts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Account_With_Nomination\"><\/span>Account With Nomination<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The nominee of an account, similar to the process of\na joint account, must file for the transfer of shares by filling out a form\nwith their data and sending a certified death certificate of the dead holder.\nApproaching the relevant depository participant or downloading it from the\ndepository participant&#8217;s website will lead you to the form. Once these documents\nand the information contained within them have been verified, the transmission\nof shares begins and is sent to the nominee&#8217;s depository participant account.<\/p>\n\n\n\n<p>If the shares have legal claims, it may be difficult\nfor the nominee to get them. It becomes a legal issue that must be resolved.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Without_A_Nomination_Account\"><\/span>Without A Nomination Account<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The transfer of shares procedure differs slightly from the simple\nprocedure described above when an account lacks a nominee. To determine who is\nthe legitimate owner of the shares, the bank or financial institution in charge\nof the transfer of shares must first analyse all prior ownership documentation\nprovided by the dead account holder. This procedure takes a long time.\nSometimes more documents are required to finish this process. If the account is\nowned jointly or if the account holder has a nominee, this procedure is not\napplicable. The dead&nbsp;<\/p>\n\n\n\n<p>The\nholder&#8217;s will is the first document that the depository participant or agent\nwill go through<strong>.<\/strong><\/p>\n\n\n\n<p>When numerouspersons are specified in the will of the deceased account holder,\ndetermining who will receive what fraction of the shares becomes an issue of\nlegal concern. To resolve this issue, the court must issue a decision.<\/p>\n\n\n\n<p>If the dead\naccount holder did not leave a will, the agent asks the person who contacted\nthem to go to court and file for a succession certificate, which must\nexplicitly say that the person is the legitimate owner of the shares.<\/p>\n\n\n\n<p>When such a\ncircumstance arises, the most practical and advised course of action is to hold\nan internal discussion with all of the share&#8217;s successors, if any. A situation\ninvolving legal issues is avoided by talking about and agreeing on the\nproportion of shares that each successor wants to receive. To successfully\ntransfer shares to the account holder&#8217;s heirs, this agreed-upon declaration\nmust be submitted to the court for approval. Each individual legal heir will be\nrequired to submit their legal affidavit for the court&#8217;s approval.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_For_How_to_Transfer_Physical_Shares_After_Obtaining_a_Succession_Certificate\"><\/span>Procedure For How to Transfer Physical Shares After\nObtaining a Succession Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Get A Succession Certificate.<\/h3>\n\n\n\n<p>The appropriate court must issue a <strong><a href=\"https:\/\/corpbiz.io\/succession-certificate-in-india\">succession certificate<\/a><\/strong> before you may transfer actual shares. A succession certificate is a legal document that certifies the lawful heirs&#8217; entitlement to the decedent&#8217;s property. Although the steps involved in obtaining a succession certificate can differ from nation to nation, generally speaking, they are as follows:<\/p>\n\n\n\n<ul>\n<li>Submitting a petition      to the appropriate court with information on the decedent and the      legitimate heirs<\/li>\n\n\n\n<li>Presenting documentary      proof of the deceased&#8217;s demise, such as a death certificate.<\/li>\n\n\n\n<li>Providing      documentation, such as birth certificates, that shows the lawful heirs&#8217;      familial ties to the dead<\/li>\n\n\n\n<li>Paying the necessary      court costs.<\/li>\n<\/ul>\n\n\n\n<p>The\nlegitimate heirs will get a succession certificate if the court is satisfied\nwith the evidence. The transfer of actual shares will require this certificate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Locate The Share Certificates.<\/h3>\n\n\n\n<p>Finding the actual share certificates is the next\nstep. These certificates could be kept by the dead person, held by a bank, or\ntraded by a broker. It&#8217;s possible that you&#8217;ll need to look for them and get\nthem before starting the transfer procedure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Transfer Of Shares<\/h3>\n\n\n\n<p>Once you\nhave the share certificates and the succession certificate, you can move on to\nstep three, which is the transfer of shares. Although the steps involved in the\ntransfer of physical shares can vary from nation to nation, generally speaking,\nthey are as follows:<\/p>\n\n\n\n<ul>\n<li><strong>Complete the transfer      deed:<\/strong> The legal document      known as a transfer deed is used to transfer ownership of shares from the      deceased to the designated legal heirs. The share certificates, the names      of the lawful heirs, and their signatures must be included on the transfer      document.<\/li>\n\n\n\n<li><strong>Have the transfer deed      notarized<\/strong>: Either a public notary      or an authorised officer of the firm whose shares are being transferred      must notarize the transfer deed.<\/li>\n\n\n\n<li><strong>Submit the transfer      deed and the succession certificate<\/strong>: The      firm whose shares are being transferred must receive both the transfer      deed and the succession certificate. In order to reflect the transfer of      shares, the corporation will update its records after verifying the      paperwork.<\/li>\n\n\n\n<li><strong>Pay the transfer fees:<\/strong> In order to transfer shares, the      corporation may impose a transfer fee. This charge shall be borne by the      lawful successors.<\/li>\n\n\n\n<li><strong>Update the share      register:<\/strong> The firm will update      its share register to reflect the new ownership once the transfer of      shares is complete.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"After_Receiving_a_Succession_Certificate_You_Must_Take_the_Following_Actions_to_Transfer_Physical_Shares\"><\/span>After Receiving a Succession Certificate, You Must\nTake the Following Actions to Transfer Physical Shares:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>It is important to keep in mind that the process of transferring actual shares might take several weeks, and you might need to check in again with the registrar to make sure the transfer is handled promptly:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Make contact with the registrar:<\/strong> The first step is to make contact with the registrar of the corporation in which the shares are held. The registrar is in charge of keeping track of the company&#8217;s shareholders and may supply you with the essential information and papers for the transfer.<\/li>\n\n\n\n<li><strong>Fill out the transfer form:<\/strong> Once you&#8217;ve gathered all of the relevant paperwork, you&#8217;ll need to fill out a transfer form. This form requires the name of the dead shareholder, the name of the successor, the number of shares to be transferred, and the successor&#8217;s signature.<\/li>\n\n\n\n<li><strong>Provide required documents:<\/strong> You must also provide a copy of the succession certificate, the death certificate of the deceased shareholder, and any other documents requested by the registrar.<\/li>\n\n\n\n<li><strong>Submit the transfer form and documentation:<\/strong> Once you have completed the transfer form and provided the required documents, you must submit them to the registrar. The paperwork will then be verified, and the transfer will be completed by the registrar.<\/li>\n\n\n\n<li><strong>Receive transfer confirmation: <\/strong>The registrar will send you a confirmation after the transfer is finished. This confirmation will include information like the quantity of transferred shares and the new shareholder&#8217;s name.<\/li>\n\n\n\n<li><strong>Update records:<\/strong> It&#8217;s crucial to update your records after you&#8217;ve received confirmation of the transfer. This involves changing your own records to reflect the transfer, such as your bank records. You must also update your own records with the information on the new shares if you are the new shareholder.<\/li>\n\n\n\n<li><strong>Pay any fees that may be necessary<\/strong>: Some registrars may charge a fee for handling the transfer of actual shares. To finalise the transfer, you must pay this charge.<\/li>\n\n\n\n<li><strong>Take dematerialization into account<\/strong>: In some circumstances, converting physical shares into electronic form may be advantageous. Dematerialization can facilitate transfers and lower the possibility of physical share certificates being misplaced or damaged.<\/li>\n<\/ul>\n\n\n\n<p>It is important to remember that the procedure for transferring actual\nshares might be complicated and may change based on the particulars. To ensure\nthat the transfer is carried out correctly and effectively, it is important to\nmake contact with the registrar and obtain expert guidance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Along With the Application for A Name Change, The\nDocuments That Follow Must Be Submitted.<\/h3>\n\n\n\n<ul>\n<li>Physical certificates\n     for shares<\/li>\n\n\n\n<li>Death Certificate of\n     the Deceased<\/li>\n\n\n\n<li>PAN Card of the\n     Successor<\/li>\n\n\n\n<li>Transmission Request\n     Form<\/li>\n\n\n\n<li>Attested Signatures by\n     the Successor&#8217;s Banker Proof of the Successor&#8217;s Address<\/li>\n\n\n\n<li>Any more documentation\n     as requested by the company.<\/li>\n<\/ul>\n\n\n\n<p>Some of the aforementioned documents might not need to be provided if the physical shares were held jointly with another holder or if a nomination was registered.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issuance Of New Shares and Demat Account<\/h3>\n\n\n\n<p>The corporation will issue the new certificates in\nthe names of the new holders in physical form after receiving the application\nthat is complete in all respects and the necessary supporting documentation.\nHowever, these shares must first be dematerialized through a demat account in\norder to be sold.<\/p>\n\n\n\n<p>The original physical shares registered in the name\nof the new holder must be sent to the company where the new holder has a demat\naccount in order for these shares to be dematerialized. In order to sell such physical\nshares, the new holder would first need to open a demat account if they don&#8217;t\nalready have one.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Transferring physical shares after receiving a succession certificate might be difficult, but it&#8217;s crucial to follow the law to make sure the transfer is legitimate and lawful. To ensure that the transfer is completed correctly, it is advised that you get legal counsel and direction. The transfer of physical shares can be carried out without incident with the right advice and documents, enabling the legal heirs to receive the dead person&#8217;s assets.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-much-time-it-takes-to-get-succession-certificate\/\">How Much Time It Takes To Get Succession Certificate?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A demat account holder may choose to keep their account solely (solo account) or jointly (joint account) with another person. When an account holder dies, the transmission rules are put into effect. Either the joint account holder or the account&#8217;s heirs must get in touch with a depository participant before the transmission of shares can [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":57551,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[272],"tags":[1746],"acf":{"service_id":"693"},"authorName":"Bhanwati","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-50.jpg","authorDescription":"She is pushing Diploma in Drafting , Negotiation &amp; Enforcement of Contract from NALSAR University of Law, Hyderabad. She has done Masters from Amity University , Lucknow in 2021 with Masters Degree in Law. Also she has been graduated from the Dr Ram Manohar Lohia National law University, Lucknow in 2020 with\u00a0 Bachelor Degree in Law.","postViews":3743,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/57549"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=57549"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/57549\/revisions"}],"predecessor-version":[{"id":63884,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/57549\/revisions\/63884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/57551"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=57549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=57549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=57549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}