Share Certificate

Tax Glossary Definition

Share Certificate

A share certificate is an official document issued by a company to its shareholders as evidence of their ownership of a specific quantity of shares. After a company is incorporated under the Indian Companies Act, it provides this certificate to each shareholder, containing information such as the holder’s name, type and number of shares owned, distinctive share numbers, and the date of issuance.

Example: For instance, when an investor acquires 500 equity shares in XYZ Ltd., the company provides a share certificate that formally verifies their ownership of those shares.

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