SEBI Eases Transmission of Securities, Raises Simplified Claim Limits

The Securities and Exchange Board of India (SEBI) has replaced the patchwork of documentary demands for transmission of securities after an investor's death with a single, risk-based framework. SEBI Circular No. HO/38/13/11(14)2026-MIRSD-POD/I/17111/2026 dated 23 July 2026, issued under its Ease of Doing Investment and Ease of Doing Business initiative, applies to listed companies, registrars and share transfer agents (RTAs), depositories, depository participants, mutual funds and asset management companies. It came into force 30 days from the date of issue.

The reforms were approved at the SEBI Board meeting on 19 June 2026, as recorded in SEBI Press Release No. 33/2026.

Three categories of claims

Transmission differs from a transfer: it happens by operation of law when the holder dies, and the claimant may be a nominee, a legal heir or another person entitled to the assets. The circular sorts every claim into one of three categories by value and prescribes the documents for each, so that a claimant gets the same list from every processing entity.

The claimant values the securities using the previous closing price on any recognised stock exchange. For mutual fund units, the last available net asset value is used.

Quick Transmission Processing for small claims

QTP is a new route for small holdings, where the cost of collecting documents could exceed the value of the claim. It is limited to immediate relatives of the deceased: parents, spouse, children and parents-in-law. The claimant needs only:

• a transmission request on plain paper;
• the death certificate;
• proof of relationship; and
• the client master list (CML) of the demat account into which the securities are to be credited.

Simplified documentation category

SEBI has doubled the simplified documentation limits: from Rs 5 lakh to Rs 10 lakh for physical holdings, and from Rs 15 lakh to Rs 30 lakh for demat holdings. Within these limits, where there is no court-issued succession document, the claimant submits a notarised indemnity bond together with either a notarised affidavit-cum-no-objection certificate (NOC) from all legal heirs or a notarised or attested family settlement deed. Where the claimant has a document issued by a court, the indemnity and NOC are not required.

Claims above the threshold

For higher-value claims, the claimant must file a notarised affidavit-cum-NOC along with one of the following: a will with an indemnity, a legal heirship certificate with an indemnity, a succession certificate, letters of administration, or a court decree.

Documents removed or simplified

• PAN: the separate requirement to submit PAN for transmission has been removed. The claimant only quotes the PAN or PEKRN number in the request form.
• Probate: probate of a will is no longer mandatory.
• Affidavit-cum-NOC: one combined document replaces separate affidavits and no-objection certificates, which reduces paperwork where several legal heirs consent in favour of one claimant.
• QR-coded death certificates: a death certificate carrying a QR code is accepted, since the processing entity can verify it online.
• Foreign death certificates: besides certification by a court, magistrate or notary of the issuing country, consularisation by an Indian embassy or an apostille, these can now be verified through overseas branches of Indian banks or foreign banks with correspondent banking relationships with Indian banks.

Joint holders and timelines

Where securities are held jointly, the surviving joint holders receive them on the strength of the death certificate alone, in line with section 56(2) and section 56(4)(c) of the Companies Act, 2013. The processing entity must complete transmission within 21 calendar days of receiving complete documents. It must acknowledge each request and tell the claimant about any missing document. Requests can be submitted online or physically, and physical securities are converted to demat form after verification.

The framework covers listed securities and units of AMCs on the death of the sole holder or all joint holders. It does not apply to disputed or competing claims that need judicial resolution. RTAs must report monthly to SEBI for six months on implementation. The circular was issued under section 11(1) of the SEBI Act, 1992, section 19 of the Depositories Act, 1996, Regulation 101 of the SEBI (LODR) Regulations, 2015 and Regulations 37 and 38 of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations.

What families and advisers should do

• List every holding of the deceased: physical shares, demat accounts, and mutual fund or SIF units held in statement-of-account form.
• Value each holding on the previous closing price or last NAV and place the claim in the right category: QTP, simplified or above threshold.
• Check whether a nomination or will exists, and whether the securities were held jointly, before gathering documents.
• Use the standard forms annexed to the circular and do not accept demands for documents the framework no longer needs, such as probate for a claim within the simplified limits.

For listed companies, RTAs, depository participants and AMCs, forms, checklists and front-office guidance must match the new categories. The purpose of a uniform framework is that a claimant receives the same requirements whichever entity processes the request. Investors can reduce the burden on their families by keeping nominations current across demat accounts, physical folios and mutual fund folios.

Updated on 28 September 2026: verified against the SEBI circular and Board press release, added the QTP eligibility and documents, category-wise document lists, valuation basis, 21-day timeline, joint-holder rule, legal basis and effective date, merged a duplicate report, and linked official sources.