Document background
A Simple Share Transfer Agreement is a fundamental document used in Indian corporate transactions to formalize and document the transfer of shares between parties. This agreement is essential when shareholders wish to sell or transfer their shares to other individuals or entities, whether in private or public companies. The document must comply with the Companies Act, 2013, SEBI regulations (for listed companies), and other relevant Indian legislation. It typically includes details about the shares being transferred, consideration amount, payment terms, and completion mechanics. The agreement is particularly important as it serves as evidence of the transfer for corporate and tax purposes, and is required for updating the company's statutory registers. It's commonly used in various scenarios including exit of shareholders, internal restructuring, or investment transactions, and must be properly stamped as per the Indian Stamp Act to be admissible as evidence.
