Can Shares Be Transferred At Face Value?

Can right shares be issued at face value?

Sections 62: Right Issue of Shares.

As per Section 62(1), A Company can issue and allot shares on Face Value irrespective of Net worth of Company.

However, under Section 62 there is no requirement of Valuation of Shares.

Therefore, one can opine that in case of right issue there is no need of Valuation Report..

What is the minimum face value of a share?

The companies are incorporated with INR 10 face value (most of them), INR 100 or INR 1. SEBI, which governs the rules for listing of a Public Limited company in a stock exchange, specifies a minimum face value of INR 1. This is not applicable or connected to a Private Limited Company in any way.

Is valuation required for transfer of shares?

Under Income-tax Act, 1961 There are two options for valuation of FMV u/r 11UA: a) NAV method: As perRule 11UA, there is no specific requirement that which person will do the valuation. Therefore, one can opine that any registered valuer can do the valuation for issue of shares on fair Market Value.

How do I transfer shares between shareholders?

The legal process to transfer your shares to the company is called a share buy-back. As part of a share buy-back, the company buys back the relevant shareholder’s shares and then cancels them….Transferring to the Companyselective share buy-back;equal access buy-back; and.employee share scheme buy-back.

Can a CA issue share valuation certificate?

The income tax (I-T) has barred all chartered accountants (CAs) from valuing shares of closely-held companies. … So, unlisted shares or unlisted companies may be sold or valued by a CA’s valuation but, for I-T purposes, it will require a merchant banker’s valuation report.

How does a rights issue affect share price?

When a company comes out with a rights issue, it gives shareholders a chance to increase their exposure to the stock at a discounted price. When a rights issue is offered, the stock price gets diluted and will likely go down as more shares are issued to the market.

What documents are required to transfer shares?

A person who gives his signature, name and address as approval for transfer must see the transferor and the transferee sign the share/debentures transfer deed in person. The relevant share/debenture certificate or allotment letter with the transfer deed must be attached and sent to the company.

How do you transfer shares of an unlisted private company?

How to Transfer Shares of a Private Limited CompanyStep 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.More items…

How shares can be transferred?

Shares can be transferred from a shareholder to another person (either a new or existing shareholder). Shares are transferred by way of gift or sale. … So long as a company has enough shares, it’s possible to transfer shares in a limited company any time after incorporation.

Can Face value increase?

Face value increases on Reverse Stock Splits. Bonus shares does not affect Face Value.

Can we transfer shares from one broker 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.

What is the stamp duty for transfer of shares?

Calculating the duty cost – How much duty is payable? A transfer of shares or units in an unlisted corporation or unit trust scheme generally attracts duty of approximately 60c/$100 of the unencumbered market value of the shares or units.

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.

Who decides the face value of a share?

Difference between face value and market value:Face valueMarket ValueThe price is decided by the companyPrice at which the stocks are traded in stock exchanges. It will change, once trading commences.3 more rows

Which share has highest face value?

Highest Face Value Shares in IndiaCompanyMarket Price (approximate)TimesMRF Limited₹59,0005,900Eicher Motors₹2,1002,100Tata Consultancy Services₹2,5002,500Page Industries Limited₹18,4001,8403 more rows

Who is not eligible for shares under private placement?

Further, unlike a public offer where shares are offered to public at large, a private placement can be made to a maximum of 200 people (and not mare than 50 people per offer) in a financial year. This number excludes qualified institutional buyers such as banks, financial institutions etc.

How do I change ownership of shares?

How to complete a Stock Transfer FormCompany name and registration number.Number and class (type) of shares being transferred.Amount paid or due to be paid for the shares, if applicable.Details of any non-cash payments, if applicable.Name and address of existing owner (the ‘transferor’)More items…•

Can I transfer my demat account to another broker?

The transfer of shares from one Demat account to another can be done in two ways – Manual and Online. In manual transfer of shares, the transfer may be Intra-Depository Transfer or an Off-Market Transfer. … Note that the shares need to be transferred along with their ISIN number.