A family may know that an investor owned shares or mutual funds and still struggle to get them transferred. Which account held the investment? Was there a nominee? What paperwork will the broker or fund house ask for?
SEBI’s July 2026 rules make those questions easier to answer. They create a simpler process for very small claims and set out standard documents for other claims. The rules cover listed securities and units issued by asset management companies when the sole holder, or all joint holders, have died.
First, check how the investment is held
If there is a surviving joint holder, the securities generally pass to that holder. Under SEBI’s framework, the processing entity should ask for a copy of the deceased holder’s death certificate, without asking the survivor for additional KYC papers, indemnities or undertakings. The circular notes a qualification for shares where a company’s articles say otherwise.
If a nominee is registered, the nominee can apply with the prescribed transmission form, a verifiable death certificate, the nominee’s demat account details and the relevant security certificate or statement of account, where applicable. A nominee receives the assets as a trustee for the legal heirs. Nomination helps with transfer; it does not, by itself, settle who ultimately inherits the investment.
If there is no nominee, the documents depend on the value of the claim and who is claiming it.
Small claims have a shorter paperwork route
SEBI calls its new low-value category Quick Transmission Processing. It covers claims up to ₹10,000 for physical holdings and ₹30,000 for demat holdings. Only a parent, spouse, child or parent-in-law of the deceased can use this route. The claimant submits SEBI’s form and undertaking on plain paper, proof of the relationship, and the common claim documents, including a verifiable death certificate.
For example, suppose a woman dies leaving ₹20,000 of shares in a demat account with no nominee. Her son may qualify for this route if he supplies the required documents. The ₹30,000 test applies to the relevant demat holding, so the family should confirm the claim’s value rather than assume each share is assessed separately.
For claims above the quick-processing limit but within ₹10 lakh for physical holdings or ₹30 lakh for demat holdings, SEBI provides a simplified documentation route. Where there is no nominee, this generally calls for a notarised indemnity bond and a combined affidavit and no-objection declaration from the legal heirs, or an eligible family settlement deed. Court-issued succession documents can remove some of those requirements. Higher-value claims need further succession documents; the processing entity may seek additional papers if it records its reasons.
What can a family do when making a claim?
Ask the broker, depository participant, registrar or fund house for its transmission form and document list. SEBI requires processing entities to make the standard forms and claim procedure available both physically and on their websites. Submit the documents, keep the acknowledgement, and ask for written confirmation when the full set has been received. That date matters: the entity generally has 21 calendar days from receipt of all required documents to process the claim. If it delays or rejects the request, it must give reasons in writing.
The easiest preparation happens before a claim is needed. Check the nominee and joint-holder details on each demat account and mutual fund folio. Keep an accessible record of account and folio information, and make sure the family knows where it is. A nomination can simplify the first transfer, while clear estate instructions help the family understand who should ultimately receive the assets.
A limit to remember: SEBI’s standard process does not resolve competing claims between heirs. Families in a dispute may need legal proceedings, regardless of the portfolio’s value. “Quick” describes the reduced documentation category, not a promise of instant transfer.
Transmission is only one part of the job a family faces. What to do about the money after a death covers the bank accounts, the provident fund, the life cover, and the order to take them in.
Source: Securities and Exchange Board of India, “Simplification and standardisation of the framework for transmission of securities”, 23 July 2026. This article explains the claim procedure; inheritance rights depend on the applicable law and facts of the estate.