Transfer of Shares after Death from Demat Account
The article provides steps that need to be followed to transfer securities from the Demat account of a deceased holder to the account of a surviving joint holder(s), nominee, or legal heir.
Transmission of securities:
Ownership right of deceased share/debenture holder can be passed on to the legal heir/nominee through a process known as transmission. The process for transmission of securities is as follows:
1. If you are a nominee:
For shares in demat mode, you have to provide the following documents to the depository participant :
- Notarized copy of the death certificate
- Duly filled Transmission Request Form (TRF)
2.Where there is no nomination:
Shares held in Demat mode: If the value of the shares does not exceed Rs. 1 lakh, one or more of the following documents is to be submitted to the DP:
- Notarised copy of the death certificate
- Transmission Request Form (TRF)
- Affidavit - to the effect of the claim of legal ownership to the shares,
- Deed of indemnity - Indemnifying the depository and depository participants (DP)
- NOC* (no objection certificate) from legal heir(s), if applicable or family settlement deed duly executed by all legal heirs of the deceased beneficial owner.
If value is more than Rs. 1 lakh, the DP may ask for one or more of the following documents additionally :
- Surety form
- Succession certificate
- Probated will
- Letter of Administration
3. Shares held in Physical mode:
In case of physical/Paper certificates, you may be required to provide one or more of the following documents to the RSTA
- Original Share certificates.
- Duly filled Transmission Request Form (TRF).
- Notarized copy of the death certificate.
- Succession certificate or
- Probate or letter of administration duly attested by Court Officer or Notary
- Copy of PAN card
* In case of multiple successors, NOC from non-applicants shall be asked on the share transmission form of the applicant instead of insisting separate share transmission form from each of the successors.
Timeline for transmission: Shares in physical form are required to be transmitted within one month of receipt of a complete set of requisite documents. Shares in Demat form are required to be transmitted within seven days of receipt of the complete set of requisite documents by the DP.
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