Procedure for Transmission of Shares in the Event of Death of a Shareholder
Life is uncertain. Death is certain.
What follows death, however, should not be uncertainty for the family—especially when it comes to financial assets.
Recently, an acquaintance had to go through the process of transmission of shares after the sudden demise of her spouse. Like many families, she was unaware of the formal procedure and documentation involved. This experience highlights why every investor and family member should be familiar with the SEBI-prescribed process for transmission of shares.
Transmission refers to the transfer of ownership of shares to the legal heir(s) due to death of the shareholder. This is not a sale or transfer—it is a statutory process.
Below is a simplified and structured explanation for awareness.
When There Is a Nominee
Shares held in Demat Mode
The nominee must submit the following documents to the Depository Participant (DP):
- Notarized copy of the Death Certificate
- Duly filled Transmission Request Form (TRF)
Shares held in Physical Mode
The nominee may be asked to submit the following documents to the Registrar and Share Transfer Agent (RTA):
- Original share certificates
- Duly filled Transmission Request Form (TRF)
- Affidavit or declaration by the nominee confirming entitlement
- Notarized copy of the Death Certificate
When There Is No Nomination
Part A: Shares held in Demat Mode
When the value of shares is up to ₹1,00,000
The DP may require one or more of the following:
- Notarized copy of the Death Certificate
- Transmission Request Form (TRF)
- Affidavit confirming legal ownership
- Deed of Indemnity indemnifying the DP and Depository
- No Objection Certificate (NOC) from other legal heir(s), if applicable, or a duly executed family settlement deed
When the value of shares exceeds ₹1,00,000
In addition to the above, the DP may insist on:
- Surety form
- Succession Certificate, or
- Probated Will
Shares held in Physical Mode (No Nomination)
The Registrar and Share Transfer Agent (RTA) may require:
- 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 a Court Officer or Notary
In cases involving multiple legal heirs, the NOC from non-applicants can be recorded directly on the transmission form of the applicant instead of submitting separate forms from each successor.
Timelines as per SEBI Guidelines
Transmission must be completed within:
- 7 days for shares held in Demat form
- 1 month for shares held in Physical form
The timeline is counted from the date of submission of a complete Transmission Request Form along with required documents.
Final Thought
Transmission of shares is not legally complicated—but it becomes emotionally and procedurally exhausting if documentation is missing or if nominations are not in place.
A simple nomination, updated records, and basic awareness can spare families months of stress during an already difficult time. Planning for death is not pessimism—it is responsibility.
Source: SEBI
