In a significant move aimed at reducing the difficulties faced by families after the death of an investor, market regulator Securities and Exchange Board of India
(SEBI) has approved a simplified framework for the transmission of securities. The new rules are designed to help legal heirs, nominees and claimants gain quicker access to shares and other investments while reducing paperwork, legal costs and procedural delays.
For investors, the reforms provide greater assurance that their families will be able to inherit investments more smoothly. For legal heirs, the changes mean fewer documents, faster processing and easier verification requirements.
Faster Access to Small Investments
One of the most important changes is the introduction of Quick Transmission Processing (QTP), a special mechanism for low-value claims.
Under the new system:
• Physical securities worth up to ₹10,000 can be transferred through a simplified process.
• Demat holdings worth up to ₹30,000 can also be processed under the quick route.
For families, this means small investments are less likely to remain unclaimed because of lengthy paperwork or legal formalities. In many cases, the cost and effort involved in claiming small holdings previously discouraged heirs from initiating the process.
Higher Limits for Simplified Documentation
SEBI has also doubled the value thresholds under which claimants can use simplified documentation.
The revised limits are:
• Physical shareholdings: increased from ₹5 lakh to ₹10 lakh per listed company.
• Demat holdings: increased from ₹15 lakh to ₹30 lakh per beneficial owner.
This change will benefit a much larger number of investors and their families by reducing the need for extensive legal documentation for medium-sized holdings.
No Need To Submit PAN Again
Another major relief is the removal of the requirement to submit a permanent account number (PAN) during transmission.
Since PAN details are already collected when a demat account is opened, SEBI has recognised that asking claimants to submit the same information again serves little purpose.
For legal heirs, this eliminates an additional compliance step and reduces the chances of delays arising from documentation mismatches.
Probate Requirement Removed
SEBI has also removed the requirement to obtain probate of a Will in cases covered under the transmission framework.
Obtaining probate can be both time-consuming and expensive, often involving legal proceedings and court-related expenses. By removing this requirement, SEBI has significantly reduced one of the biggest hurdles faced by families seeking transfer of securities after the death of an investor.
The move is expected to shorten the overall processing timeline and lower costs for claimants.
One Document Instead of Multiple Affidavits
The regulator has introduced another simplification by allowing claimants to submit a combined affidavit-cum-no objection certificate (NOC).
Previously, legal heirs often had to arrange separate affidavits and NOCs from family members, adding to paperwork and legal expenses.
The combined document is expected to make the process simpler and easier to understand for claimants.
Easier Verification of Death Certificates
SEBI has expanded the list of acceptable documents for confirming the death of an investor.
Apart from original or attested copies, intermediaries will now be allowed to accept death certificates containing QR codes that can be digitally verified.
For families, this means fewer difficulties in obtaining certified copies and quicker validation of documents.
Relief for Overseas Families and NRIs
The revised framework also addresses challenges faced by families of investors who lived abroad or died outside India.
For foreign-issued death certificates, SEBI has introduced alternative verification methods through the overseas branches of Indian banks and foreign banks with correspondent banking relationships with Indian banks.
This is expected to make the transmission process more efficient for non-resident Indians (NRIs), overseas heirs and families dealing with cross-border inheritance matters.
What Investors Should Do Now
The reforms also serve as a reminder for investors to keep their investment records updated and ensure nominations are properly registered.
Investors may consider:
• Verifying nominee details in demat and mutual fund accounts.
• Updating contact information and KYC records.
• Informing family members about investment holdings.
• Maintaining records of demat accounts, mutual funds and share certificates.
Taking these steps can help ensure that heirs are able to benefit from the simplified transmission framework when required.
Why the Changes Matter
Transmission of securities has long been considered one of the more cumbersome processes in the capital market ecosystem. Families often faced delays, repeated documentation requests and legal costs that, in some cases, exceeded the value of the investments being claimed.
By introducing quick processing for small claims, doubling simplified-documentation limits, removing PAN and probate requirements, and allowing easier verification of death certificates, SEBI has sought to make inheritance of investments faster and less burdensome.
For investors, the reforms provide greater confidence that their wealth can be transferred efficiently to beneficiaries. For legal heirs, they promise quicker access to inherited investments with fewer procedural hurdles and lower compliance costs.
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