Transposition of Shares - Application Letter to Company format

The word Transpose, as per Oxford Dictionaries, means 'Cause two or more things to exchange places' or 'Transfer to a different place or context'. Transposition of shares means change of order in which names of joint holders appear in a share certificate or in a demat account.

For example: If Mr. Harry and Ms. Emma are holding 10 shares in Qwert Pvt Ltd, and in their share certificate Mr. Harry's name is mentioned first and Ms. Emma's name is mentioned under it, then Mr. Harry is called the first holder and Ms. Emma is called the second or joint holder. If they want to change this order and make Ms. Emma the first holder and Mr. Harry the second holder, they have to request to the company or their Registrar & Share Transfer Agent (RTA) or the stock trading company where demat account is held.

How to apply for change: At first, it'd be advisable that you contact the company/ RTA/ stock trading company to find out the documents required for this and if they accept requests only in specific format, then you can check with them for such specific forms. You can find their address, to where all the documents have to be sent, on their official website.

Or else you can write a letter with all the necessary details and enclose the required documents along with it and send to the company for doing the needful. Following format could be useful.

SAMPLE #1

(In case shares held in Physical certificate)

Date: .................

From

(Name of the Shareholders)

(Address, Phone Nos.)

To

(Name of the Company / RTA)

(Address, Phone No.)

Sub.: Application for Transposition of shares

Dear Sir/Madam,

We, the undersigned, are currently holding the following securities in the (name of the company).

(1) Folio no.: ................

(2) No. of securities: ..................

(3) Type of securities: ....................

(4) No. of share certificates: ...............

We kindly request you to transpose our holdings in the following order in the register of members of the company.

1st holder: (name of the shareholder)

2nd holder: (name of the shareholder)

Original share certificates are enclosed herewith. The fresh share certificates may kindly be sent to our registered address.

Kindly do the needful and oblige. Please communicate once it is done.

Thanking you!

Yours faithfully,

signature

(Name of the First Holder)

signature

(Name of the Second Holder)

SAMPLE #2

(In case of transposition of physical shares as per order of joint holders' names in Demat account and demating request)

Date: ...................

From

(Name of the Shareholders)

(Address, Phone Nos.)

To

(Name of the Stock Trading Company)

(Address, Phone no.)

Sub.: Request for Transposition of Shares

Dear Sir/Madam,

We are having a demat and trading account in your company. We wish to have our following shareholdings transposed in the order in which we have an account with you. Kindly note the following information:

(1) DP Id: ....................

(2) Client Id: ...............

(3) Company unit: (Name of the Company)

(4) No. of shares: ...................

(5) Type of shares: .................

(6) No. of share certificates: ..................

The original share certificates along with the Dematerialization Request Form for demating of the above mentioned shares are enclosed herewith.

Kindly do the needful and communicate once it is updated.

Thanking you!

Yours faithfully,

signature

(Name of the First Holder)

signature

(Name of the Second Holder)