Companies Act, 2017 — section 77

77. Notice of refusal to transfer..—(1) If a company refuses to register a transfer of any shares or other securities, the company shall, within fifteen days after the date on which the instrument of transfer was lodged with the company, send to the transferee notice of the refusal indicating reasons for such refusal: Provided that failure of the company to give notice of refusal after the expiry of the period mentioned in this section or section 75, shall be deemed refusal of transfer.

(2)Any violation of this section shall be an offence liable to a penalty of level 2 on the standard scale.