SEBI has revised the framework for transmitting securities after an investor’s death. The changes introduce Quick Transmission Processing for eligible low-value claims and simplify documentation to make the process more efficient and investor friendly.
Claiming a deceased loved one’s shares or mutual funds can be a lengthy, stressful process requiring multiple documents and institutional visits during a difficult time.
The Securities and Exchange Board of India (SEBI) has introduced a revised framework to simplify how securities are transferred to the rightful claimant after an investor’s death. The regulator says the changes are designed to make the process more efficient, consistent and investor friendly.
Simpler process for smaller claims
One of the biggest changes is the introduction of Quick Transmission Processing (QTP) for lower-value claims. The new category is intended to help eligible claimants complete the transmission process with simplified documentation.
The revised limits are:
Type of holding | Quick Transmission Processing | Simplified documentation |
Physical securities | Up to ₹1 lakh | Up to ₹10 lakhs |
Dematerialised securities | Up to ₹30 lakhs | Up to ₹30 lakhs |
Paperwork gets an overhaul
SEBI has also standardised the documents that processing entities can ask for, reducing the need for duplicate paperwork.
The revised framework includes:
- Removal of the mandatory requirement for Probate of Will, following recent amendments to succession laws.
- A single affidavit-cum-No Objection Certificate (NOC) replacing separate affidavit and NOC documents.
- Acceptance of QR code-enabled death certificates alongside original or attested copies.
- Additional options for verifying death certificates issued in foreign jurisdictions.
The revised framework applies to listed companies, registrars and transfer agents, depositories, depository participants, mutual funds and asset management companies.
What does this mean for you?
If your family ever needs to transfer your investments after your death, the process may become more straightforward, particularly for eligible claims. SEBI aims to reduce inconsistencies and make the experience easier for claimants by introducing common procedures and documentation requirements across market participants.
The revised framework has been announced through a SEBI circular. Market participants will implement the updated procedures as prescribed.
Summary
SEBI has simplified the framework for transmitting securities after an investor’s death by introducing Quick Transmission Processing for eligible low-value claims and reducing documentation requirements. The changes aim to make the process easier for claimants while creating a more uniform transmission framework across the securities market.
