Capital markets regulator Securities and Exchange Board of India (SEBI) has proposed sweeping changes to simplify the process for transmission of securities following the death of an investor, including raising threshold limits for simplified documentation and introducing a new fast-track mechanism for small claims.
In a consultation paper released on Thursday, SEBI said the proposals aim to reduce the procedural burden on bereaved families while ensuring safeguards against fraud and wrongful claims.
Under the proposed framework, the regulator plans to introduce a “straight-through processing” category for low-value claims, allowing minimal documentation and quicker settlement. For such cases, the threshold would be set at ₹10,000 for physical holdings and ₹30,000 for dematerialised holdings per beneficial owner.
SEBI has also proposed to double the limits for simplified documentation. The threshold for physical securities would increase to ₹10 lakh from ₹5 lakh per listed entity, while for dematerialised holdings it would rise to ₹30 lakh from ₹15 lakh per beneficial owner. According to the regulator, the existing limits are outdated given the sharp growth in India’s securities markets and higher asset prices.
Documentation norms
The consultation paper also seeks to standardise documentation requirements across listed companies, registrars and transfer agents (RTAs), depositories and asset management companies. Divergent practices among these entities have often created uncertainty for claimants seeking to transfer securities after the death of an investor.
SEBI noted that claim procedures can sometimes impose significant hardship on families already coping with bereavement, particularly when probate or succession certificates are required. The regulator also highlighted a recent legal change that removed the mandatory probate requirement for wills in cities such as Mumbai, Chennai and Kolkata, which is expected to ease asset transfers.
The proposed framework would require entities to process transmission requests within 21 days of receiving complete documentation.
SEBI has invited public comments on the proposals until April 2, 2026.