Quick Answer: Is Valuation Required For Transfer Of Shares?

Who pays the stamp duty on transfer of shares?

Who is liable to pay duty on transfer of shares.

Section 29 of Stamp Act says that in the absence of an agreement to the contrary the expenses of providing the proper stamp shall be borne, in the case of transfer of shares of an incorporated company or other body corporate, by the persons executing the document..

Can I transfer physical shares to another person?

If you are someone who owns listed physical shares, you won’t be able to transfer them after March 31 without first dematerialising them. After March 31, listed companies’ physical shares will need to be ‘dematerialised’ to be sold or transferred.

How do I transfer shares between shareholders?

How to Transfer Shares in a UK Company?The name of the company and its Company Registration number.Quantity of shares to be sold.Class(es) of shares to be sold.Transferor name and address (existing shareholder)Transferee name and contact address (new shareholder)Amount on each unit that is paid or unpaid.If applicable, non- cash payment details.More items…•

Can shares be transferred below face value?

However, under the new valuation guidelines, the transfer of unlisted shares have to be at fair value thereby bringing in higher taxes to the exchequer and consequently acting as a deterrent to transfer unlisted equity shares at a value lower than fair market value, determined as per prescribed valuation rules.

What are the need for valuation of shares?

Valuation is required when implementing an employee stock ownership plan (ESOP) For tax assessments under the wealth tax or gift tax acts. In case of litigation, where share valuation is legally required. Shares held by an Investment company.

Who can do valuation of shares as per Companies Act 2013?

Section 247 of the Companies Act provides that “where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other asset or net worth of a company or its liabilities under the provisions of this Act, it shall be valued by a person having such …

Is valuation report required for transfer of shares?

Though the valuation of a listed company whose shares are actively traded on a nationwide stock exchange in India can be derived from its prevailing market price over a period of time, the valuation of an unlisted company and its shares is the real challenge. Not required, if frequently traded shares.

What are the rules for transfer of shares?

Transferor should give a notice in writing for his intention to transfer his share to the company. B. DUTY OF THE COMPANY: The company in turn should notify to other members as regards the availability of shares and the price at which such share would be available to them.

Who can do valuation of shares?

NOTE: One can opine that after 31st January, 2019 only a person registered as Registered Valuer as per Section 247 read with relevant rules are eligible to do valuation of Securities. Except Registered valuer no other persons like (Merchant Banker or Chartered Accountant) can do the valuation of Securities.