Transmission of Shares After Death: Nominee, Heirs, Documents 2026

Transmission of shares after death is the process by which a depository participant, company registrar or AMC moves a deceased investor’s holdings to the nominee, surviving joint holder or legal heirs. With a nominee, a transmission request form, the death certificate and the nominee’s demat details are usually enough. Without one, heirs prove entitlement with documents that depend on value; under SEBI’s revised framework in force from 23 August 2026, demat holdings up to ₹30 lakh qualify for simplified documents, and requests must be processed within 21 calendar days of complete documents.

Transmission is not succession

Families often mix up two separate questions. Transmission asks: to whom will the DP, company or AMC hand over the holdings? The nominee or surviving joint holder gets priority, and the institution is discharged once it transfers to them. Succession asks: who finally owns the holdings? That depends on the will, or if there is none, on the personal succession law. For Hindus, Sikhs, Jains and Buddhists, that is the Hindu Succession Act, 1956 (s.8 for a male, ss.15 and 16 for a female); Muslims follow personal law; Christians and Parsis follow the Indian Succession Act, 1925.

The Supreme Court in Shakti Yezdani v. Jayanand Jayant Salgaonkar (14 December 2023) held that nomination under company and depository law does not override succession law. SEBI’s 2026 framework also treats the nominee as receiving the assets as trustee for the legal heirs. The same principle applies to bank deposits: see bank nomination vs legal heir.

Transmission of shares after death with a nominee

1. The nominee submits a transmission request form to the DP (for demat holdings) or the RTA or AMC (for physical shares or mutual fund folios).
2. Attach a verifiable death certificate (copies with a QR code are accepted), the client master list of the nominee’s own demat account, and the original share certificate or statement of account, as applicable.
3. The holdings move to the nominee’s account. Where there are several nominees without stated percentages, they share equally under SEBI’s 2026 nomination rules; if a nominee died before the investor and the nomination was not changed, that share goes to the surviving nominees in proportion.
4. The nominee then deals with the holdings according to the will or succession law. Other heirs can claim their share by agreement or, if needed, a civil suit.

Without a nominee: documents by value

For transmission of shares after death without a nominee, the claimants file a transmission request, the death certificate, their demat client master list and the certificate or statement, plus documents depending on value:

• Quick Transmission Processing (up to ₹10,000 physical or ₹30,000 demat): a request-cum-undertaking on plain paper and a document showing the claimant’s relationship to the deceased.
• Simplified documentation (up to ₹10 lakh physical per company, or ₹30 lakh demat): a notarised indemnity bond, plus either a notarised affidavit-cum-NOC from all legal heirs or a family settlement deed signed by all heirs and attested as the framework requires.
• Above those limits, any one of: an affidavit-cum-NOC from all heirs with a copy of the will and an indemnity; a legal heirship certificate from a revenue authority not below Tehsildar rank with an indemnity; or a succession certificate, letters of administration or a court decree. See legal heir certificate and succession certificate procedure.

Reported summaries also say the deceased’s PAN is no longer required at transmission. If an entity delays beyond 21 days or rejects the request, it must say so in writing; a SEBI SCORES complaint can follow (see SEBI SCORES complaint).

Joint holders, physical certificates and the IEPF

• Joint holdings: on one holder’s death, the holdings go to the surviving holder(s) on the death certificate. As with nominees, survivorship decides whom the institution deals with, not necessarily who owns the deceased’s share.
• Physical certificates: two steps, transmission into the heir’s name with the RTA, then dematerialisation through a DP. Listed shares in physical form cannot be sold until dematerialised.
• Shares already in the IEPF: if dividends went unclaimed for seven years, use Form IEPF-5 with the transmission documents. See how to claim shares from IEPF.

Example: Rahul’s mother, a widow in Jaipur, died without a will, holding shares and mutual funds worth ₹22 lakh with his elder brother Vikram as nominee. The DP and AMC correctly transmitted everything to Vikram, who then claimed it all. Under section 15 of the Hindu Succession Act, Rahul, Vikram and their sister share equally. After a legal notice, the siblings signed a family arrangement recording each share.

Frequently asked questions

What documents are needed for transmission of shares after death?

With a nominee: a transmission request form, the death certificate, the nominee’s demat client master list and the share certificate or statement. Without a nominee, heirs add documents by value: an undertaking for small holdings, an indemnity and affidavit-cum-NOC from all heirs up to ₹30 lakh in demat form, and a legal heir certificate, will or succession certificate above that.

Is a succession certificate required to transfer shares of a deceased person?

Not always. Under SEBI’s framework from 23 August 2026, demat holdings up to ₹30 lakh and physical holdings up to ₹10 lakh per company can be transmitted with simplified documents. Above those limits, a succession certificate is one of the accepted options, alongside a Tehsildar-level legal heirship certificate or a will with heirs’ NOC.

Does the nominee become the owner of shares after the holder’s death?

No. The nominee receives the shares but holds them for the legal heirs or the will’s beneficiaries, as the Supreme Court held in Shakti Yezdani v. Jayanand Jayant Salgaonkar (2023).

How long does transmission of shares take?

Under SEBI’s revised framework, the processing entity must complete transmission within 21 calendar days of receiving all required documents, and must explain any delay or rejection in writing.

Quick quiz

Transmission of shares after death and heirs’ rights are covered in Legal Rights of Investors (₹349), which teaches rights and remedies, not what to invest in. It gives a Lexfolio certificate of completion, not a professional qualification.

Sources

• SEBI revised framework for transmission of securities, July 2026 (effective 23 August 2026)
• SEBI circular on nomination for demat accounts and mutual fund folios, 29 May 2026
• Companies Act, 2013, ss.56, 72, 124
• Hindu Succession Act, 1956, ss.8, 15, 16; Indian Succession Act, 1925
• Shakti Yezdani v. Jayanand Jayant Salgaonkar (Supreme Court, 14 December 2023)

This page is for education and general information, not legal advice for a specific case. Law as on 31 October 2026.