The Securities and Exchange Board of India (SEBI) has introduced a new framework to simplify the transmission of securities to legal heirs or claimants of deceased investors. The move aims to make the process faster and less cumbersome by reducing documentation requirements.
Transmission refers to the transfer of securities from the account of a deceased holder to a joint holder, nominee, or legal heir.
At the market regulator’s board meeting on June 19, it unveiled a new category called Quick Transmission Processing (QTP) for small-value claims and doubled thresholds for transmission, helping beneficiaries gain access to inherited securities with an ease.
“A new category of Quick Transmission Processing (QTP) for small-value claims(i.e. up to ₹10 thousand for physical holdings and up to ₹30 thousand for dematerialised holdings) has been introduced to facilitate efficient processing of such claims with minimal documentation,” said.
Further, limits for simplified documentation have also been doubled from ₹5 lakh to ₹10 lakh for physical holdings per listed company and from ₹15 lakh to ₹30 lakh for dematerialised holdings per beneficial owner, the regulator noted.
Though paper stocks are still considered valid, you need to convert them into electronic format to execute any market transactions. essential for anyone wishing to trade in the Indian stock market. These accounts are offered by depository agencies, primarily CDSL and NSDL, both of which are registered with the market regulator.
What are the key changes under the new framework?
The revised framework also introduces several documentation and process-related simplifications, which will effectively reduce the procedural burden for claimants while improving operational efficiency for intermediaries. These key changes include:
- Removal of the existing requirement to submit , considering that PAN is already available for opening demat accounts.
- Discarding mandatory requirement of probate of will, in line with recent amendments to succession laws.
- Permitting combined affidavit-cum-NOC in place of separate affidavits and no-objection certificates.
- Accepting QR code-enabled death certificates in addition to original or attested copies in view of ease of verification.
- Specifying additional modes of verification for death certificates issued in foreign jurisdictions through overseas branches of Indian banks or any foreign bank having correspondent banking relationships with Indian banks.
“The approved measures are expected to facilitate easier and faster transmission of securities and reduce costs and procedural hardship for claimants,” Sebi said.
The regulator added that the proposals were deliberated with the Industry Standards Forum for Registrars to an Issue and Share Transfer Agents and the Association of Mutual Funds in India and have factored in the feedback received on the consultation paper issued on March 12, 2026
When will the new rules take effect?
The markets regulator has approved the reforms, though the implementation date has not been announced yet. The regulator is expected to issue a detailed circular soon, which will outline the operational framework and timeline for the new rules to take effect.