Transfer of shares refers to the intentional transfer of title of the shares between the transferor (one who transfers) and the transferee (one who receives). The shares of a public company are freely transferable unless the company has a valid reason to disallow the same. The shares of a private limited company are not transferable subject to certain exceptions. A transfer deed is executed for the share transfer.
Both share transfer and share transmission involve the movement of ownership in shares. While share transfer involves the voluntary exchange of shares between parties, share transmission typically occurs due to inheritance, death, or court orders, where the shares are transferred to legal heirs or beneficiaries. A transfer deed is utilized for share transfer, and in cases of share transmission, legal documents such as a succession certificate or probate might be required.
Since brokers provide a service, they also levy fees for the service known as a brokerage that may vary from one broker to another. As a result, it is not uncommon for users to transfer shares from one demat to another as they may feel that the services being offered by another broker are superior or the charges being levied are more economical.