Application Letter to Company for Transposition of Shares

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.

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 after 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 the company or their Registrar & Share Transfer Agent (RTA) or the stock trading company where the demat account is held.

How to apply?: It would be advisable that you contact the company/ RTA/ stock trading company to find out the documents required for this. If they accept requests only in specific format, then you can ask them to mail you the specific forms. You can find their address, to where all the documents have to be sent, on their official website.

You may write a letter with all the necessary details, enclose the required documents along with it and send it to the company for this purpose.

Here are a couple of samples of the application letters for your reference.

TEMPLATE #1

(In case shares held in Physical certificate)

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

From

(Name of the Shareholders)

(Address, Phone Number)

To

(Name of the Company / RTA)

(Address, Phone Number)

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.

First holder: (Name of the Shareholder)

Second 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.

Thanking you,

Yours faithfully,

    (Signature)

(Name of the First-holder)

    (Signature)

(Name of the Second-holder)

Encl.: As above

TEMPLATE #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 Number)

To

(Name of the Stock Trading Company)

(Office Address)

(Phone Number)

Sub.: Request for Transposition of Shares

Dear Sir/Madam,

We have 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.

Thanking you,

Yours faithfully,

    (Signature)

(Name of the First-holder)

    (Signature)

(Name of the Second-holder)

Encl.: As above