Difference Between Transmission and Transfer of Shares

Transfer

A transfer is a voluntary act: one living holder sells, gifts or otherwise passes shares to another. It needs a transfer instrument or, for demat shares, an off-market or on-market delivery instruction.

Transmission

Transmission is a change in ownership by operation of law — most commonly on the death of a holder, but also in cases such as insolvency. The person entitled (nominee, surviving joint holder or legal heir) applies to be registered as holder.

Transposition

Transposition is a change in the order of names of joint holders. It is a separate service request, along with transmission, that SEBI's physical-securities rules continue to treat differently from transfers.

Why it matters

• Transfers of listed securities in physical form are not permitted; transmission of physical securities is.
• Transmission uses death certificates, nominee or heir documents and standard forms.
• Stamp duty and documentation differ.