transmission of securities

SEBI has mandated vide its circular dated 18th April, 2021 that all case of transmission of shares where the shares are held jointly, are to be transmitted to the surviving joint shareholder under the provisions of section 56(2) and 56(4)(c) of the Companies Act, 2013.

Section 56(2) says “nothing in sub-section (1) shall prejudice the power of the company to register, on receipt of an intimation of transmission of any right to securities by operation of law from any person to whom such right has been transmitted.”

Section 56(4)(c) specifies a time limit of one month from the date of receipt of the documents, within which the certificates have to be delivered post transmission.

The SEBI circular can be found here

https://www.sebi.gov.in/legal/circulars/oct-2021/transmission-of-securities-to-joint-holder-s-_53313.html

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