Winning Bizness Desk
Mumbai.The Securities and Exchange Board of India (SEBI) has significantly eased the process of transferring shares and bonds of deceased investors to their legal heirs, nominees and claimants. The move is aimed at reducing documentation requirements, speeding up claim settlements and eliminating several procedural hurdles that often delay transmission requests. The decisions were approved at SEBI’s board meeting held on June 19 and are expected to benefit thousands of families struggling to access investments left behind by deceased relatives.
Making inheritance claims easier and faster
A major reform introduced by the market regulator is the creation of a new category called Quick Transmission Processing (QTP) for low-value claims. Under the new framework, physical holdings up to Rs 10,000 and dematerialised holdings up to Rs 30,000 will qualify for this fast-track route. SEBI said these claims can now be processed with minimal documentation, helping heirs receive assets more quickly.
In stock market terminology, “transmission” refers to the transfer of shares from the account of a deceased investor to a nominee, legal heir or joint account holder.
SEBI has also doubled the value limits for transmission cases that can be settled without complex documentation.
• Physical shares:Limit increased from Rs 5 lakh to Rs 10 lakh per listed company.
• Demat holdings:Limit increased from Rs 15 lakh to Rs 30 lakh per beneficial owner.
Key changes reduce documentation burden
The regulator has introduced several measures to simplify paperwork and improve operational efficiency for intermediaries handling transmission requests.
The five major changes include:
- PAN submission no longer mandatory for claimants.
- Mandatory probate of will requirement removed.
- Single Affidavit-cum-NOC form approved.
- QR code-enabled death certificates accepted.
- Foreign death certificates can be verified through overseas branches of Indian banks and their partner foreign banks.
According to SEBI, these changes will substantially reduce delays and compliance burdens while making the overall process more user-friendly for grieving families.
Important rules for physical shareholders
While physical share certificates issued in earlier years remain legally valid, investors cannot trade or transact in them unless they are converted into demat form. Therefore, heirs inheriting physical shares may still need to dematerialize the holdings before undertaking any market transaction.
A demat account remains mandatory for investing and trading in the stock market. The country’s two principal depositories, CDSL and NSDL, provide these services under SEBI’s regulatory framework. These institutions function much like banks, except they hold securities electronically instead of money.
Implementation timeline yet to be announced
Although the reforms have received board approval, SEBI has not yet specified the implementation date. A detailed circular outlining operational guidelines, timelines and procedural requirements is expected shortly.
The proposals were developed in consultation with the Injdustry Standards Forum for Registrars to an Issue and Share Transfer Agents and the Association of Mutual Funds in India (AMFI). Feedback received on a consultation paper issued on March 12, 2026, has also been incorporated into the final framework.
Other major decisions from board meeting
Apart from easing share transmission norms, SEBI approved several other market reforms.
- Open market share buybacks through stock exchange mechanisms will be reintroduced.
- Mutual fund houses will get easier access to intra-day borrowing to manage temporary liquidity mismatches.
- Amendments to SEBI Regulations, 2001, and a new code of conduct for SEBI members have been approved to improve transparency.
SEBI Chairman Tuhin Kanta Pandey clarified that the regulator is not considering any proposal permitting self-listing by stock exchanges. Self-listing would allow an exchange or its group company to be listed on its own platform. Currently, BSE is listed, but its shares are traded only on NSE.
The latest measures are expected to make inheritance-related share transfers quicker, cheaper and less cumbersome, ensuring that legal heirs gain faster access to financial assets while reducing both paperwork and processing time.
