# Time Period for Delivery of Certificates (Section 56)
## Core Rule
Every company must deliver share/debenture certificates within specified timelines after allotment, transfer, or transmission — unless prohibited by any law or order of a Court, Tribunal, or other authority.
## Timelines at a Glance
| Event | Time Limit |
|---|---|
| Subscribers to the memorandum | 2 months from date of incorporation |
| Allotment of shares | 2 months from date of allotment |
| Transfer of securities | 1 month from receipt of instrument of transfer |
| Transmission of securities | 1 month from receipt of intimation of transmission |
| Allotment of debentures | 6 months from date of allotment |
| Specified IFSC public/private company (all securities) | 60 days from incorporation, allotment, transfer, or transmission |
## Memory Hook
- 2-2-1-1-6: Subscribers (2m), Allotment shares (2m), Transfer (1m), Transmission (1m), Debentures (6m).
- IFSC = 60 days flat for everything.
## Dematerialised Securities
Where securities are held in a depository, the company need not issue physical certificates — instead it must intimate the details of allotment to the depository immediately on allotment.
## Effect on Legal Heir (Transmission)
Upon transmission, the legal representative is deemed to be the holder of the security for purposes of execution of the instrument of transfer, even if not yet a registered holder.
## Penalty for Default
| Liable | Default | Penalty |
|---|---|---|
| Company and every officer in default | Non-compliance with Section 56(1)–(5) | ₹50,000 |
## Liability of Depository
If a depository or depository participant transfers shares with intent to defraud, it shall be liable under Section 447 (fraud) in addition to liability under the Depositories Act, 1996.
## Practical Note
With dematerialisation now mandatory even for unlisted public companies (Rule 9A, Companies (Prospectus and Allotment of Securities) Rules, 2014), the chance of forged physical certificates is almost negligible.