- Transmission is not transfer. It happens by operation of law on death, and there is no stamp duty on it.
- A nominee receives the asset as a custodian. The Supreme Court confirmed in 2023 that nomination does not override succession law.
- Banks, depositories and fund houses each run their own process, and the documents are not identical.
- SEBI rewrote the securities framework with effect from August 2026, raising the value limits for simplified documentation.
- Above those limits you are back to a succession certificate, probate or letters of administration.
The nomination misunderstanding
A nominee is the person the bank, depository or fund house is authorised to hand the asset to. That is the whole of what nomination does. It gives the institution a discharge, so it cannot be sued later by someone else claiming the same money.
It does not make the nominee the owner. In 2023 the Supreme Court settled a long running dispute on this point and held that nomination under the Companies Act does not displace the law of succession. The nominee holds the shares, and the people entitled under the Will or under intestate succession remain entitled to them.
Nomination is worth doing. It is the difference between a claim settled in weeks and one settled in months. It simply is not a substitute for a Will, and a family that treats it as one is building an argument for later.
Which is the practical case for having a Will at all, and for NRI families in particular, one that deals with the Indian assets specifically.
Three asset types, three counters
- The branch where the account is held
- Death certificate and claim form
- Nominee, or survivor in a joint account
- Without nomination, banks settle small balances on indemnity
- The depository participant, not the company
- Transmission request plus client master list
- Claimant needs their own demat account
- SEBI framework sets the documents
- The AMC or its registrar
- Transmission forms, KYC of the claimant
- Units moved, not redeemed, unless you ask
- Bank mandate has to be updated
What SEBI changed in 2026
SEBI issued a revised framework for the transmission of securities by circular dated 23 July 2026, effective from 22 August 2026. Two things in it are worth knowing.
First, the value threshold below which the simplified documentation route applies was raised. It now stands at ten lakh rupees for securities held in physical form per listed entity, and thirty lakh rupees for dematerialised holdings per beneficial owner account. Below those limits you do not need a succession certificate or probate.
Second, the framework introduces a quicker processing route restricted to immediate relatives of the deceased, defined as parents, spouse, children and parents-in-law. Your depository participant or the registrar will confirm the current limits and which route your claim falls into, since SEBI revises these periodically.
Under the simplified route the usual set is a transmission request form, a verifiable death certificate, the latest client master list, the original certificate or an account statement, and either a notarised indemnity bond with an affidavit and no objection from the other legal heirs, or a notarised or court accepted family settlement deed.
When you are above the threshold
Past those limits, or where the heirs do not agree, the institution will ask for a court document. Which one depends on whether there was a Will, and that choice is worth getting right the first time because each is a separate application in a separate forum.
Will this estate need probate?
Answer a few questions about where the assets are and whether a Will exists.
A guide, not legal advice. Estate rules vary with faith, assets, and family situation — confirm with counsel.
The extra layer when the claimant is an NRI
Everything above applies equally to an NRI heir, with three additions. Securities and units transmitted to an NRI are generally credited on a non repatriable basis unless the original investment itself was made on a repatriable basis, so the default is that the value stays in India.
Getting it out is then the normal NRO repatriation exercise, with the tax clearance forms that go with it.
And the paperwork has to be signed abroad, which means either attestation at an Indian consulate or an apostille if you are in a country that is party to the Hague Convention. Institutions are particular about this and will return documents that are merely notarised locally.
Shares on which dividends have gone unclaimed for seven consecutive years are transferred, along with the unclaimed dividends, to the Investor Education and Protection Fund. Recovering them from the IEPF Authority is a separate claim with its own process, and it is materially slower than a normal transmission. This is the strongest argument against letting a deceased parent's portfolio sit.
What delays these claims
- The name on the folio does not match the name on the death certificate, usually because of an initial or a maiden name.
- The claimant has no demat account of their own, or one that is not KYC compliant.
- One heir is uncontactable, so the no objection affidavit cannot be completed.
- Documents signed abroad were notarised locally rather than apostilled or consularised.
- Nobody has established whether a Will exists, so the family starts down the intestate route and has to restart.
- Old physical certificates that have to be dematerialised before anything else can happen.
I am the nominee. Do I still need the other heirs to agree?
The institution will release the asset to you as nominee. Whether you keep it depends on succession law, so where other heirs exist, their entitlement survives. In practice most families document the position rather than leave it open.
Is there tax on transmission?
Inheritance itself is not taxed in India and transmission does not attract stamp duty. Tax arises later, when the heir sells, and the cost and holding period of the deceased carry over for computing the gain.
Do I need a succession certificate for a bank account?
Not always. Where there is a nominee or a surviving joint holder, banks settle on their own claim forms. Without one, most banks have an internal limit below which they settle against an indemnity and a legal heir declaration.
The shares are in physical form. Does that change anything?
Yes. Physical holdings carry a lower simplified threshold and usually have to be dematerialised as part of the process, which adds time. Start with the registrar of the company concerned.
Can I do all of this without travelling to India?
Mostly yes, provided your documents are properly attested abroad and someone in India can deal with the registrar or depository participant on your behalf. The court applications, where needed, are handled through a Power of Attorney.
This article is for general information only and reflects rules current as of 2026. It is not legal, tax, or financial advice. Rules, rates and procedures change, so please confirm the current position with a qualified professional before acting.