Audry Fernandes (nil) 26 March 2011

relinquishment of rights in shares

Several years ago I had purchased a few shares in different companies primary issues. These were purchased with different second holders.

As a result I now hold a few shares in certificate form with different second names ( my brothers, mother).

Demating these is now a problem. and the number of idnividual shares is really few (some are even 17 shares 15 shares) I would need to open several demat accounts.

Can the second holder relinquish their rights? All the shares were purchased totally with my funds. My brothers too would have no objection to relinquish their rights. At that time I wanted to be fair to all my family members and hence purchased these with different second holders.

Would I be liable to pay tax?

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2 Replies

V. VASUDEVAN (LEGAL COUNSEL) 26 March 2011

1.You gan get the shares transferred in your name by transfer - stamp duty @ o.25% of the market rate has to be paid. Write in consideration column of the transfer deed "NIL" and keep the back up of investment by you for tax purposes. No tax applicable. You can also the transfers through your DP for transfer - cum - demat process.

vasudevan

Audry Fernandes (nil) 29 March 2011

Thank you very much Mr. Vasudevan. Tho it does seem unfail for me to pay stamp duty. I am the first holder and have paid the entire amount for purchase of these shares.