law: Companies Act, 1956
  Sec 108    -    
  
  Transfer not to be registered except on production of instrument of transfer.
  (1) A company shall not register a transfer of
  
  shares in, or debentures of, the company, unless a proper instrument of
  
  transfer duly stamped and executed by or on behalf of the transferor and by or
  
  on behalf of the transferee and specifying the name, address and occupation, if
  
  any, of the transferee, has been delivered to the company along with the
  
  certificate relating to the shares or debentures, or if no such certificate is
  
  in existence, along with the letter of allotment of the shares or debentures :
  Provided  that where, on an application in
  
  writing made to the company by the transferee and bearing the stamp required
  
  for an instrument of transfer, it is proved to the satisfaction of the Board of
  
  directors that the instrument of transfer signed by or on behalf of the transferor
  
  and by or on behalf of the transferee has been lost, the company may register
  
  the transfer on such terms as to indemnity as the Board may think fit :
  Provided  further that nothing in this section
  
  shall prejudice any power of the company to register as shareholder or
  
  debenture-holder any person to whom the right to any shares in, or debentures
  
  of, the company has been transmitted by operation of law.
  (1A) Every instrument of transfer of shares
  
  shall be in such form as may be prescribed, and :
  (a) every such form shall, before it is signed
  
  by or on behalf of the transferor and before any entry is made therein, be
  
  presented to the prescribed authority, being a person already in the service of
  
  the Government, who shall stamp or otherwise endorse thereon the date on which
  
  it is so presented, and
  (b) every instrument of transfer in the
  
  prescribed form with the date of such presentation stamped or otherwise
  
  endorsed thereon shall, after it is executed by or on behalf of the transferor
  
  and the transferee and completed in all other respects, be delivered to the
  
  company,
  (i) in the case of shares dealt in or quoted
  
  on a recognized stock exchange, at any time before the date on which the
  
  register of members is closed, in accordance with law, for the first time after
  
  the date of the presentation of the prescribed form to the prescribed authority
  
  under clause (a) or within twelve months from the date of such presentation,
  
  whichever is later ;
  (ii) in any other case, within two months from
  
  the date of such presentation.
  (1B) Notwithstanding anything contained in
  
  sub-section (1A), an instrument of transfer of shares, executed before the
  
  commencement of section 13 of the Companies (Amendment) Act, 1965 (31 of 1965)
  
  or executed after such commencement in a form other than the prescribed form,
  
  shall be accepted by a company,
  (a) in the case of shares dealt in or quoted
  
  on a recognized stock exchange, at any time not later than the expiry of six
  
  months from such commencement or the date on which the register of members is
  
  closed, in accordance with law, for the first time after such commencement,
  
  whichever is later ;
  (b) in any other case, at any time not later
  
  than the expiry of six months from such commencement.
  (1C) Nothing contained in sub-sections (1A)
  
  and (1B) shall apply to :
  (A) Any share :  (i) which is held by a
  
  company in any other body corporate in the name of a director or nominee in
  
  pursuance of sub-section (2), or as the case may be, sub-section(3), of section
  
  49, or (ii) which is held by a corporation, owned or controlled by the Central
  
  Government or a State Government, in any other body corporate in the name of a
  
  director or nominee, or (iii) in respect of which a declaration has been made
  
  to the Public Trustee under section 153B, if : (1) the company or corporation,
  
  as the case may be, stamps or otherwise endorses, on the form of transfer in
  
  respect of such share, the date on which it decides that such share shall not
  
  be held in the name of the said director or nominee or, as the case may be, in
  
  the case of any share in respect of which any such declaration has been made to
  
  the Public Trustee, the Public Trustee stamps or otherwise endorses, on the
  
  form of transfer in respect of such share under his seal, the date on which the
  
  form is presented to him, and (2) the instrument of transfer in such form, duly
  
  completed in all respects, is delivered to the : (a) body corporate in whose
  
  share such company or corporation has made investment in the name of its
  
  director or nominee, or (b) company in which such share is held in trust,
  
  within two months of the date so stamped or otherwise endorsed ; or
  (B) any share deposited by any person with :
  
  (i) the State Bank of India, or (ii) any scheduled bank, or (iii) any banking
  
  company (other than a scheduled bank) or financial institution approved by the
  
  Central Government by notification in the Official Gazette (and any such
  
  approval may be accorded so as to be retrospective to any date not earlier than
  
  the 1st day of April, 1966), or (iv) the Central Government or a State Government
  
  or any corporation owned or controlled by the Central Government or a State
  
  Government, by way of security for the repayment of any loan or advance to, or
  
  for the performance of any obligation undertaken by, such person, if : 
  
  (1) the bank, institution, Government or corporation, as the case may be,
  
  stamps or otherwise endorses on the form of transfer of such share : (a) the
  
  date on which such share is returned by it to the depositor, or (b) in the case
  
  of failure on the part of the depositor to repay the loan or advance or to
  
  perform the obligation, the date on which such share is released for sale by
  
  such bank, institution, Government or corporation, as the case may be, or (c)
  
  where the bank, institution, Government or corporation, as the case may be,
  
  intends to get such share registered in its own name, the date on which the
  
  instrument of transfer relating to such share is executed by it ; and (2) the
  
  instrument of transfer of such form, duly completed in all respects, is
  
  delivered to the company within two months from the date so stamped or
  
  endorsed.
  Explanation. :  Where any investment
  
  by a company or a corporation in the name of its director or nominee referred
  
  to in clause (A)(i) or clause (A)(ii), or any declaration referred to in clause
  
  (A)(iii), or any deposit referred to in clause (B), of this sub-section is made
  
  after the expiry of the period or date mentioned in clause (a) of sub-section
  
  (1B) or after the expiry of the period mentioned in clause (b) of that
  
  sub-section, as the case may be, the form of transfer, in respect of the share
  
  which is the subject of such investment, declaration or deposit, means the
  
  prescribed form ;
  or
  (C) any share which is held in any company by
  
  the Central Government or a State Government in the name of its nominee, except
  
  that every instrument of transfer which is executed on or after the 1st day of
  
  October, 1966, in respect of any such share shall be in the prescribed form.
  (1D) Notwithstanding anything in sub-section
  
  (1A) or sub-section (1B) or sub-section (1C) where in the opinion of the
  
  Central Government it is necessary so to do to avoid hardship in any case, that
  
  Government may on an application made to it in that behalf, extend the periods
  
  mentioned in those sub-sections by such further time as it may deem fit whether
  
  such application is made before or after the expiry of the periods aforesaid ;
  
  and the number of extensions granted hereunder and the period of each such
  
  extension shall be shown in the annual report laid before the Houses of
  
  Parliament under section 638.
  (2) In the case of a company having no share
  
  capital, sub-section (1) shall apply as if the references therein to shares
  
  were references instead of the interest of the member in the company.
  (3) Nothing contained in this section shall
  
  apply to transfer of security effected by the transferor and the transferee
  
  both of whom are entered as beneficial owners in the records of a depository.