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SEBI eases rules for transfer of securities after investor's death

(20-Jun-26   15:10)

The Securities and Exchange Board of India (SEBI) has approved a revamped framework for the transmission of securities aimed at making the process faster and simpler for legal heirs and claimants of deceased investors.

The decision was taken at the regulator's board meeting held on 19 June 2026.

As part of the reforms, SEBI has introduced a new Quick Transmission Processing (QTP) category for small-value claims. The facility will apply to claims of up to Rs 10,000 for physical holdings and up to Rs 30,000 for dematerialised holdings, enabling such cases to be processed with minimal documentation.

The regulator has also doubled the limits for simplified documentation. For physical holdings, the threshold has been increased to Rs 10 lakh per listed company from Rs 5 lakh earlier. For dematerialised holdings, the limit has been raised to Rs 30 lakh per beneficial owner from Rs 15 lakh.

SEBI has introduced several measures to simplify documentation requirements. The submission of PAN has been removed from the transmission process, as PAN details are already available while opening demat accounts.

The regulator has also dispensed with the mandatory requirement of probate of will in line with recent amendments to succession laws. In addition, claimants will now be allowed to submit a combined affidavit-cum-no objection certificate (NOC) instead of separate documents.

To simplify verification, SEBI has permitted the use of death certificates carrying QR codes alongside original or attested copies of death certificates.

For death certificates issued in foreign jurisdictions, the regulator has specified additional verification mechanisms through overseas branches of Indian banks and foreign banks having correspondent banking relationships with Indian banks.

SEBI said the revised framework is expected to facilitate faster transmission of securities, reduce costs and ease procedural burdens for claimants.

The regulator added that the proposals were finalised after consultations with the Industry Standards Forum for Registrars to an Issue and Share Transfer Agents, the Association of Mutual Funds in India and other stakeholders.

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