SEBI has introduced new rules to make transferring securities after an investor's death faster and easier. The regulator has doubled the claim limits for simplified documentation and launched a quick process for smaller claims. This move aims to reduce paperwork and speed up asset transfer for beneficiaries, helping to simplify the process for families to claim inherited shares and bonds.
What Happened
The Securities and Exchange Board of India (SEBI) has approved major changes to the process of transferring securities—such as shares and bonds—from a deceased investor to their legal heirs. The goal is to make the process less stressful and time-consuming for beneficiaries by removing unnecessary documentation and simplifying the verification steps. These changes apply to both physical share certificates and holdings in dematerialised (demat) accounts.
New Quick Transmission Process
SEBI has introduced a 'Quick Transmission Processing' (QTP) route for smaller claims. This is designed to settle claims without requiring the extensive paperwork usually needed for larger inheritances. For physical share certificates, this quick route is now available for claims up to ₹10,000. For demat holdings, the limit for this simplified process is ₹30,000. By using this route, beneficiaries can get assets transferred with minimal documentation, speeding up the entire settlement.
Doubled Claim Thresholds
For cases where no nomination was registered by the investor, SEBI has made it significantly easier to claim assets. The monetary limits for simplified documentation have been doubled. For physical holdings, the limit has been raised from ₹5 lakh to ₹10 lakh per listed company. For demat holdings, the threshold has been increased from ₹15 lakh to ₹30 lakh per beneficial owner. This means heirs can now claim much larger amounts without needing to go through complex, lengthy procedures.
Eased Documentation Requirements
To reduce red tape, SEBI has removed several mandatory document requirements that often caused delays:
- The Permanent Account Number (PAN) is no longer required as a separate document, as this data is already present in the demat account system.
- The requirement to obtain probate of a will—a court-certified document—has been removed, aligning the process with modern succession laws.
- Claimants can now submit a combined affidavit-cum-No Objection Certificate (NOC) instead of multiple separate forms.
- Death certificates with QR codes will now be accepted, making verification faster.
Why This Matters For Investors
The transmission of assets after a family member passes away is often a complicated and frustrating experience. By removing these hurdles, SEBI is addressing a common pain point that has historically contributed to a large volume of unclaimed securities in the Indian market. For investors, this ensures that the assets they leave behind are easier for their families to access. For the market, this move helps reduce the amount of capital locked in unclaimed accounts, potentially bringing more assets back into active circulation.