When an investor dies, the family may face a difficult task at an already painful time. Shares, mutual fund units and other securities do not simply move to the family member who has a right to them. A formal transmission process is required.
For many families, this process has meant several documents, legal formalities and repeated communication with different financial institutions. The process could also differ from one institution to another.
The Securities and Exchange Board of India, or SEBI, has now taken steps to make this process simpler. On July 23, 2026, SEBI issued a revised framework for the transmission of securities. The new system aims to create a common and clear process across listed companies, registrars and transfer agents, depositories, depository participants and mutual funds.
The revised framework takes effect from August 19, 2026. It also asks processing entities to try to extend the benefit of the simpler process to some claims that were already pending.
What Does Transmission of Securities Mean?
Transmission refers to the process through which securities move to a nominee or legal heir after the death of an investor.
It is different from a normal sale or transfer. The investor does not choose to sell the shares. Instead, the securities pass to another person because of the investor’s death and the rights that arise under the nomination or succession process.
This distinction matters because the family has to prove its right to receive the securities. SEBI’s new framework tries to make that proof easier without removing safeguards against false claims.
A New Route for Small Claims
One of the biggest changes is the introduction of Quick Transmission Processing, or QTP.
This route is meant for low-value claims. Under the new framework, QTP applies to securities worth up to ₹10,000 when they are held in physical form. For securities held in dematerialised form, the limit is ₹30,000.
The idea is simple. A very small investment should not require the same level of paperwork as a large investment.
For QTP cases where there is no nominee, the simplified route is available to immediate relatives. These include parents, spouse, children and parents-in-law of the deceased holder, subject to the conditions under the framework.
This can be especially useful for families with small shareholdings or mutual fund investments. In such cases, the cost, time and effort of a lengthy legal process can sometimes feel much higher than the value of the investment itself.
Higher Limits for Simplified Documentation
SEBI has also revised the limits for the simplified documentation route.
For securities held in physical form, the threshold is now ₹10 lakh. For securities held in dematerialised form, the threshold is ₹30 lakh.
This is important because many claims can now fall under a simpler process.
The framework also allows a listed company, at its discretion, to increase the ₹10 lakh threshold for securities held in physical form. This gives some flexibility where a company believes a higher limit can work without creating additional risk.
The higher limits should reduce the number of families that have to deal with more complex documentation for ordinary inheritance claims.
Probate of a Will Is No Longer Mandatory
Another major change is the removal of the mandatory requirement for probate of a will under the standard transmission framework.
Probate is a court process that confirms the validity of a will. Its removal from the mandatory requirements can save heirs considerable time, money and effort in cases where the other documents provide enough evidence for the claim.
This does not mean that a will has become irrelevant. A will can still be an important document when the family decides who has the right to the securities.
For claims above the simplified documentation threshold, additional documents may still be required. Depending on the case, these can include a copy of the will, legal heirship certificate, succession certificate, letter of administration or court decree.
So, the change is a reduction in unnecessary legal steps rather than the removal of succession rules.
One Document Instead of Two
SEBI has also made the paperwork easier by combining the affidavit and No Objection Certificate into one document.
Earlier, claimants could have to deal with separate documents for these purposes. The new system provides for a combined affidavit-cum-NOC from the relevant legal heirs.
The document confirms the identity of the legal heirs, their claim to the securities and their lack of objection to the transmission.
For families, this should make the process easier to understand. It also creates a common format that processing entities can use across cases.
Death Certificates Get a More Practical Option
The new framework also recognises QR-code-enabled copies of death certificates as acceptable documents.
This is a useful change because QR codes can help with verification. A copy with a QR code can now serve as an eligible document under the framework, subject to the applicable requirements.
SEBI has also addressed cases where an investor dies outside India.
For foreign death certificates, the framework allows additional verification methods. These include certification through overseas branches of scheduled commercial banks registered in India and branches of foreign banks that have correspondent relationships with Indian banks.
This should help families who face extra difficulty when the death certificate comes from another country.
A Common Process Across Institutions
A major problem in the past was that investors could face different procedures depending on the institution that held their securities.
SEBI has now prescribed standard forms and procedures. Processing entities have to use standardised forms for transmission claims and make them available in physical form as well as on their websites. They can also provide online submission and tracking facilities.
This can make the process more predictable.
Instead of trying to understand a different set of requirements for every company, registrar or intermediary, families should have a clearer framework to follow.
A 21-Day Timeline
Time is another important part of the reform.
Under the new framework, the processing entity has to process a transmission case within 21 calendar days from the date it receives all the required documents.
The 21-day period starts only after the complete set of required documents has been received. Therefore, claimants still need to submit the correct papers.
If a claim faces a delay or rejection, the claimant must be told the reason. This adds greater accountability to the process.
SEBI will also receive monthly reports from processing entities for six months after the new framework takes effect. These reports will help the regulator assess how claims are handled under the revised system.
What Nominees Stand to Gain
Nominees can benefit from a clearer and more standard process. A valid nomination can make the first stage of transmission much easier because the securities can be transmitted to the nominee under the prescribed procedure.
The framework also states that the regulated entity is fully discharged from its liability after transmission of the assets to the nominee or nominees.
At the same time, nomination does not change the basic rules of succession. A nominee should not assume that nomination automatically settles every question about the final ownership of the assets. Legal rights between heirs can still matter.
The real benefit is that the nominee has a clearer route to receive the securities from the financial institution.
What Happens When There Is No Nominee?
The new framework also provides a route for cases where no nomination exists.
In such situations, the securities can be transmitted to the claimant or legal heir after the required documents are submitted. The common requirements can include a transmission request form, the claimant’s latest Client Master List for a demat account, a verifiable death certificate and the original security certificate or relevant statement of account, as applicable.
For small QTP claims, an immediate relative can use the simpler process if the required conditions are met.
For larger claims, additional documents may be required. These can include an indemnity bond, affidavit-cum-NOC, family settlement deed, legal heirship certificate, succession certificate, letter of administration, will or court decree, depending on the case.
A Meaningful Relief for Families
The July framework is important because it does not treat every transmission claim in the same way.
A small claim can use QTP. A claim within the simplified documentation limit can use a relatively easier process. More valuable or complicated claims can still face stronger checks.
This risk-based approach makes sense. It can reduce the burden on ordinary families while keeping safeguards for larger claims.
For investors, the main gain is less uncertainty. For nominees and legal heirs, the benefit is a clearer path, fewer unnecessary documents and a fixed 21-calendar-day processing period after submission of all required papers.
The new framework does not remove every legal requirement, and families still need to provide accurate documents. However, it marks a clear move towards a simpler system.
For people who hold shares, mutual fund units or other securities, the message is also practical: keep nomination details updated, make sure family members know about the investments, and keep important documents easy to access. These simple steps can make the transmission process much smoother when the family needs it most.
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