Akshay Shah (Accountant) 01 November 2022

Shares not transferrable ?

Hello,

My dad used to to work in Force Motors.(Earlier known as Bajaj Tempo)

He had purchased 300 shares (todays value - 4 lakhs approx) under Employee quota in 1986 and he retired 10 years ago. He has no contact with anyone from the company .

Now the thing is that my father says these shares can only be sold to other employees (which are priced way below market value) or can be transferred to immidiate family members.They cannot be sold on open market. He says many employees had tried but failed to demat those shares.

The Share Certificate which i have attached contains the following wording :

"Second "A" equity shares not transferrable upto 23rd december 1990.Subject to restrictions on transfer"

So, I want to transfer these shares to his demat account so that we can sell if we need to. what would be the correct way to proceed.

One thing i would like to add is dad receives dividend electronically every year to his bank account.I am based in Pune.

Link of Share Certificate : https://drive.google.com/file/d/1giYA6XWwpfDtvIzdm7WNnBIkr9uaOtYu/view?usp=sharing

On page 2 of the pdf you can read the wrding i mentioned above

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2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 27 August 2025

To transfer the shares to your father's demat account, you'll need to follow these steps: -

*Verify the Share Certificate*: Review the share certificate to understand the restrictions on transfer. The certificate mentions "Subject to restrictions on transfer," which may require clarification from the company or a legal expert. -

*Contact Force Motors*: Reach out to Force Motors' investor relations or registrar and transfer agent to inquire about their process for transferring shares with restrictions. They may provide guidance on the necessary documentation and procedures. -

*Demat Account Details*: Ensure your father's demat account is active and get the account details, including the DP ID and Client ID.

- *Fill out the Transfer Form*: Complete the transfer form or Delivery Instruction Slip (DIS) provided by the current broker or registrar. Specify the shares to be transferred, including the ISIN, quantity, and target demat account details. -

*Submit Required Documents*: Provide supporting documents, such as the share certificate, identity proof, and address proof, as required by the company or registrar.

- *Monitor the Transfer Status*: Track the transfer status with the company or registrar to ensure the shares are credited to your father's demat account.

*Potential Issues and Considerations* - *Restrictions on Transfer*: The share certificate's restriction on transfer may impact the transfer process. Clarify with the company or a legal expert to ensure compliance. -

*Tax Implications*: Transferring shares between accounts owned by the same person typically doesn't incur taxes. However, if the shares are transferred to a different person, tax implications may arise. -

*Brokerage Fees*: Some brokers may charge fees for transferring shares. Confirm with the broker or registrar to understand any applicable charges.

*Next Steps* - Consult with Force Motors' investor relations or a legal expert to understand the specific requirements for transferring these shares. - Ensure all documentation is in order, and the transfer process is initiated correctly to avoid any delays or issues.

S Jadhav 98336 98330 (Jadhav & Associates) 10 October 2025

The restictions cannot be for indefinite time and as you have pointed out, they were applicable until 1990.

Please visit the office of the RTA and take their help in getting the shares in demat format without which one cannot transfer the shares. If your father has a demat accoiunt already in his single name the RTA will help you transfer the shares to the demat account. If you do not have such an account, you may submit the form for opening the demat and dematerialsing the shares in the same application.

Once the shares are in demat form, you may transfer by sale or otherwise to another person's demat account.