Template Description:

The template titled "Form No. SH-4 - Securities Transfer Form" is a crucial document used in the transfer of securities as required under the Companies Act, 2013. It is a 3-page MS Word document This form is mandatory for companies for documenting securities transactions accurately. The intended audience includes companies, legal professionals, and corporate consultants. 

Understanding Form SH 4 - Securities Transfer Form

Key Components of the Form:

Transferor and Transferee Details:

The form begins with spaces to fill in the details of the Transferor(s) (the current holder of the securities) and the Transferee(s) (the new holder). This includes full names, signatures, and registered folio numbers, which are essential for identifying the parties involved in the transaction.

Security Details:

The form requires a detailed description of the securities being transferred. This includes the type and class of securities, their nominal value, the amount called up, and the amount paid up per unit. Accurate entry of this information is critical as it defines the financial instruments being transferred.

Consideration and Quantity:

The form captures the number of securities being transferred and the consideration (payment) received for them. The amount must be stated both in figures and words, which helps in avoiding discrepancies.

Distinctive Numbers and Certificate Numbers:

The distinctive numbers of the securities and the corresponding certificate numbers must be listed. These numbers uniquely identify each security unit, ensuring that the correct securities are transferred.

Witness and Office Use:

A witness must confirm that the Transferor has signed the document in their presence. Additionally, there is a section for office use, where officials can record the verification and registration details, including the date of entry in the Register of Transfer and any other relevant official notations.

Enclosures:

The form must be accompanied by necessary enclosures such as the certificate of shares, debentures, or other securities. If no certificate is issued, a letter of allotment or other relevant documents must be attached.

Purpose and Importance:

This form serves as a legal instrument for the seamless transfer of ownership of securities. It not only ensures that all parties involved are properly documented but also that the transfer complies with the legal framework set by Indian corporate law. The detailed information required in the form minimizes the risk of disputes or errors during the transfer process. Furthermore, the inclusion of a witness signature and office verification provides an additional layer of security and authenticity to the transaction.

Conclusion:

Form SH-4 is an essential document in the corporate governance landscape, ensuring the proper and lawful transfer of securities within or outside a company. It is a formalized approach to documenting transfers, thus protecting the rights and interests of both Transferors and Transferees.