Yes there is no restriction to transfer of shares less then the face value of shares. But the market price is mandatory to consider. below that it cannot be done.
Does transfer of shares require valuation?
Any transfer of unquoted (unlisted) shares shall be subject to determination of Fair market value calculated in accordance with the method (formula) as prescribed in the above-mentioned rule which shall not be less than book value of shares which has to be certified by a Category-I Merchant banker or Chartered …
Can you transfer shares for less than nominal value?
A share cannot be issued on terms a shareholder will pay the company less than that nominal value for the share. However, shares can be issued for more than their nominal value – ie on terms the shareholder pays a ‘premium’.
How is share transfer value calculated?
The transfer of unquoted shares is however subject to determination of a “Fair Market Value (FMV)” calculated in accordance with the method (formula) as prescribed in Rule 11U & 11UA of the Income-tax Rules, 1962….Transfer of Shares of Unlisted Companies.
| Full Value of Consideration | Rs. 17,50,000/- (FMV) |
|---|---|
| Short Term Capital Gain | Rs. 7,50,000/- |
What is the procedure of transfer of shares?
Step 1: Obtain share transfer deed in the prescribed format. Step 2: Execute the share transfer deed duly signed by the Transferor and Transferee. Step 3: Stamp the share transfer deed as per the Indian Stamp Act and Stamp Duty Notification in force in the State.
Can you transfer shares from one company to another?
You can transfer an entire stock trading account or particular stocks from one brokerage to another. If you have stock held in a different way, like bought directly from a company or held through a paper stock certificate, you can generally transfer this to a brokerage too.
