In a significant relief for families seeking to inherit shares and mutual fund investments, market regulator Securities and Exchange Board of India (SEBI) has removed the mandatory requirement of obtaining probate of a Will under the standard framework for transmission of securities, while introducing a simplified and standardised process aimed at making inheritance claims faster and less cumbersome.
The revised framework,
issued through a circular (blob), seeks to harmonise the transmission process across listed companies, registrars and transfer agents (RTAs), depositories, depository participants (DPs), mutual funds and asset management companies (AMCs). The new rules will come into force from 19 August 2026.
The regulator said the revised framework has been introduced as part of its ongoing efforts to enhance ease of doing investment and ease of doing business by making the transmission process more efficient and investor-friendly. The framework applies to the transmission of listed securities and mutual fund units following the death of the sole holder or all joint holders, but will not apply where there are disputes or competing claims among legal heirs.
Probate No Longer Mandatory
One of the biggest changes is the removal of the mandatory requirement to produce probate of a Will under the standard transmission framework, aligning SEBI's regulations with recent amendments to succession laws.
While claimants may still submit court-issued documents, such as a succession certificate, probate of a Will, a letter of administration, or a court decree, wherever available, these documents are no longer compulsory in all cases under the simplified framework.
Quick Processing for Low-value Claims
SEBI has also created a new category, quick transmission processing (QTP), for small-value claims to ensure faster settlement.
Under the QTP mechanism, the simplified process will be available for securities valued up to ₹10,000 in physical form and ₹30,000 in dematerialised form.
For larger holdings, the simplified documentation framework will apply up to ₹10 lakh for physical securities and ₹30 lakh for securities held in demat form. The regulator has also allowed listed companies to enhance the ₹10 lakh threshold for physical securities at their discretion.
Standard Documentation Across All Intermediaries
A major objective of the SEBI's revised framework is to eliminate differences in documentation requirements followed by various market intermediaries.
SEBI has prescribed common forms and standard documentation for all processing entities, including listed companies, RTAs, depositories, DPs and mutual funds. The regulator has also standardised transmission request forms, indemnity bonds and affidavit formats, which entities must make available both physically and on their websites.
Affidavit-cum-NOC Replaces Multiple Documents
The revised rules simplify paperwork by replacing separate affidavits and no-objection certificates (NOCs) with a single affidavit-cum-NOC, reducing the documentation burden on legal heirs.
For claims within the simplified documentation category, legal heirs may also submit a duly attested family settlement deed in eligible cases instead of separate affidavits.
QR-code Death Certificates Accepted
SEBI has expanded the range of acceptable documents for proving the death of an investor.
In addition to original or attested copies of death certificates, processing entities will now accept QR code-enabled death certificates, making verification easier.
For investors who died overseas, the regulator has widened the methods for authenticating foreign death certificates by permitting certification through overseas branches of Indian scheduled commercial banks and branches of foreign banks maintaining correspondent banking relationships with Indian banks, in addition to existing methods such as notarisation, consularisation (by Indian embassy/ consulate general in the country of issuance) and apostille.
Immediate Relatives Eligible Under QTP
Where no nomination exists, the QTP facility will be available only to immediate relatives of the deceased investor, including spouses, parents, children and parents-in-law.
Such claimants will need to submit a transmission request form-cum-undertaking along with proof establishing their relationship with the deceased security holder.
Mandatory 21-day Processing Timeline
To reduce delays, SEBI has directed all processing entities to complete transmission requests within 21 calendar days from the receipt of all required documents.
If a request is delayed or rejected, the concerned entity must communicate the reasons in writing to the claimant. SEBI has also warned that it may initiate regulatory action where delays are attributable to the processing entity.
Additionally, listed companies, RTAs, depositories, DPs and AMCs will have to submit monthly reports to SEBI for six months detailing the number of transmission requests received, approved, rejected and pending under the revised framework.
Physical Securities to Be Compulsorily Dematerialised
For securities held in physical form, SEBI has mandated that once a transmission request is approved, the securities must be converted into dematerialised form and credited directly into the claimant's demat account.
The regulator has also laid down procedures for handling locked-in securities and preserving defaced physical certificates after successful dematerialisation.
Relief for Surviving Joint Holders
The SEBI circular also reiterates that where securities are jointly held, surviving joint holders will continue to receive the securities under the rule of survivorship.
In such cases, processing entities cannot insist on additional documentation, including KYC, indemnities or undertakings, and may seek only a copy of the deceased holder's death certificate.
The comprehensive overhaul is expected to substantially reduce documentation, bring uniformity across intermediaries and significantly shorten the time taken by families to access inherited investments after the death of an investor.
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