Share Claimers

  The world of finance and investment can be intricate, especially when it comes to the ownership and transfer of shares. One important aspect that investors and shareholders need to understand is the concept of " Transmission of Shares " and the role of "share claimers" in this process. This article aims to shed light on these terms and their implications for shareholders. What is Transmission of Shares? Transmission of shares refers to the process through which ownership of shares is transferred due to specific events, such as the death of a shareholder or the adjudication of a shareholder as a mentally incapacitated person. Unlike the voluntary transfer of shares, such as through buying and selling in the market, transmission occurs automatically and typically involves the legal representatives of the deceased or incapacitated shareholder. Key Events Leading to Transmission Death of a Shareholder : When a shareholder passes away, their shares do not vanish.

  In today’s digital age, most financial transactions have shifted online, and the same holds true for shareholding. Gone are the days of holding physical share certificates, which are prone to loss, theft, or damage. The Dematerialization of Shares , or Demat of physical share certificates, allows investors to convert their physical certificates into electronic form. This process makes trading and managing shares much more convenient and secure. What is Dematerialization of Shares? Dematerialization of shares is the process by which physical share certificates are converted into electronic or digital format. In this format, shares are held in a Demat account, much like a bank account holds money. The Demat account simplifies the process of buying, selling, and transferring shares. In India, the Demat of Physical Share Certificate is managed through depositories like National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). These depositories w