Dividend is payable to whom?

According to section 206, dividend is payable to:-

1. The registered share holders or to their bankers.
2. The bearer of share warrants.

In case of sale of shares:

As per section 206(A) companies Amendment Act, 1988, in case of shares the transfer deed in respect of which has been lodged with the company and is pending registration at the time of payment of dividend, the dividend shall be paid to the transferee only in case the transferor has given a written mandate to that effect.