To transfer shares inherited from a deceased relative, you apply for “transmission” with the deceased’s depository participant (for shares held in a demat account) or the company’s registrar and transfer agent (for physical share certificates), submitting a death certificate, a transmission request form, your own KYC details, and proof of your claim as a nominee, joint holder, or legal heir. The paperwork you need depends mainly on whether the deceased named a nominee and on the value of the holdings, and SEBI has been steadily simplifying the rules so that smaller estates often don’t need a court-issued succession certificate. The process is manageable when you take it one step at a time, and this guide walks through each stage. Thresholds and document lists have been revised recently, and different sources describe slightly different limits, so always confirm the current requirements with the depository participant or registrar handling your case. This is general information, not legal or tax advice; consider consulting a lawyer or chartered accountant for a complex estate.
First, Understand “Transmission”
- Transmission is the process of moving securities from a deceased person’s account to the name of the surviving joint holder, the nominee, or the legal heir. It’s different from a normal transfer between living people, which happens through a sale or gift.
- A nominee is a custodian, not automatically the final owner. A nominee can receive the securities, but under succession law the legal heirs may have a claim to them, and SEBI has made it easier for nominees to pass the securities on to the rightful heirs without added tax burdens on the transfer.
- Don’t try to sell the shares first. The securities must be transmitted into a demat account in the claimant’s name before they can be sold.
Step 1: Find Out What the Deceased Owned
- Look for statements: demat account statements, contract notes, mutual fund statements, share certificates, and emails from brokers or registrars.
- Check the consolidated account statement issued by the depositories, which shows holdings across demat accounts and mutual funds linked to the holder’s PAN.
- Ask the broker or DP where you know the deceased had an account.
- Check bank statements for dividend credits, which can point to companies whose shares were held, including old physical holdings.
- Look for unclaimed items: dividends unclaimed for seven consecutive years may have been transferred, with the shares, to the Investor Education and Protection Fund, which has its own claim process.
- Search for physical certificates among the deceased’s papers, and note folio numbers and registrar details.
Step 2: Work Out Your Category
Surviving joint holder: if the demat account or folio was held jointly, the surviving holder typically becomes the sole owner, subject to the account’s mode of operation, with a simpler process.
Registered nominee: if the deceased registered a nominee, the nominee follows the nominee route, which has the lightest paperwork.
No nominee, with a Will: the legal heirs named in the Will claim the securities, usually with the Will, an indemnity bond, and other proof of legal heirship.
No nominee and no Will (intestate): the legal heirs under the applicable succession law claim, often with a legal heir certificate, affidavits, and no-objection statements from other heirs.
Step 3: Gather the Documents
Exact lists vary by DP and registrar, but typically include:
Common documents for all cases
- A duly filled transmission request form, supplied by the DP or registrar
- The death certificate, original or an attested copy as required
- KYC documents of the claimant, such as identity and address proof
- Bank account details and a cancelled cheque or proof, for dividends and proceeds
- Details of the claimant’s demat account, such as a client master report, where the shares will be credited
Where a nominee is registered
- Generally the common documents above, plus the nominee’s identity proof and any forms the DP requires.
Where there is no nominee, and the value is within the simplified threshold
- A notarised affidavit from the legal heirs, on non-judicial stamp paper of the appropriate value, identifying them and stating their claim to the securities
- An indemnity bond in the prescribed format
- No-objection statements from the other legal heirs, if the securities are to go to one or some of them
- Proof of legal heirship, as applicable, such as a legal heir certificate or a family settlement document
Where the value is above the simplified threshold
- A succession certificate, probate of the Will, letters of administration, or a court decree, as applicable, along with the other documents.
What Are the Value Thresholds?
SEBI allows simplified documentation, without a succession certificate or probate, for holdings up to certain values when there’s no nominee. The figures have been revised upward over time:
- Earlier thresholds: around ₹15 lakh per beneficial owner account for demat holdings and ₹5 lakh per listed company for physical holdings.
- A newer framework issued in 2026 reportedly doubled these to about ₹30 lakh for demat and ₹10 lakh for physical holdings, and streamlined the paperwork, for example by allowing a combined affidavit-cum-indemnity in place of several separate documents, and by dropping the requirement to submit a PAN for the transmission itself.
Sources describe these changes slightly differently, so ask your DP or registrar which threshold and document list they’re applying.
Step 4: Submit the Request
For demat shares
- Submit the transmission request and documents to the DP where the deceased’s demat account is held.
- If you don’t already have a demat account, open one in your own name, since the securities need somewhere to be credited, unless you’re transmitting to the surviving joint holder’s existing account.
- Keep copies and get an acknowledgement number.
For physical certificates
- Submit the request and certificates to the company’s registrar and transfer agent, following its checklist.
- Under current rules, the securities from such transmission are credited in demat form, so you’ll need a demat account.
Step 5: Processing Time
- Demat securities: SEBI’s framework has set a timeline of about 7 days from receipt of complete documents, though some sources mention longer periods, such as 21 days, under newer rules.
- Physical securities: about 21 days after complete documents.
- Delays are common when documents are incomplete, signatures or names don’t match, or the DP or registrar needs clarification, so follow up regularly.
Step 6: After the Shares Arrive
- Check the credit in your demat account, and confirm the number and details of the securities.
- Update your nominee on your own account.
- Make sure dividends and benefits are directed to your bank account.
- Keep all documents: the death certificate, transmission approval, and records of the original purchase cost and dates.
- Consider whether to hold or sell, based on your own financial plans.
Multiple Heirs
- If several heirs share the estate, the shares can be transmitted jointly, or to one heir with no-objection statements from the others, or divided according to a Will or family settlement.
- A written family arrangement can prevent disputes and make the DP’s job easier.
- Disputes between heirs can require a court order, which takes longer.
- Minor heirs claim through a guardian, with additional documents.
Tax Points to Know
- Inheriting shares isn’t taxed as income in India, since there’s no inheritance tax, according to current rules, but check the latest provisions.
- When you sell later, capital gains tax applies, and the cost of acquisition and the holding period generally relate back to the original owner, which can affect your tax. A tax professional can confirm how this applies to you.
- Keep the deceased’s purchase records where possible, since they help calculate gains.
- Transmission itself typically isn’t treated as a sale.
Special Cases
- NRI or foreign heirs: foreign exchange rules may apply to holding and repatriating inherited shares, so seek professional advice.
- Old physical shares: these often involve more paperwork, such as signature checks and duplicate certificates if originals are missing.
- Unclaimed dividends and the investor fund: if the shares have moved to the investor fund, you’ll need to follow the separate IEPF claim process.
- Mutual funds and other assets: these have similar but separate transmission processes with the fund houses.
Common Mistakes to Avoid
- Trying to sell before transmission.
- Submitting incomplete or mismatched documents.
- Using the wrong stamp paper value for affidavits and indemnity bonds.
- Ignoring other heirs, which can cause disputes and delays.
- Missing unknown holdings by not checking statements and registrars.
- Falling for agents who promise quick results for large fees.
- Giving up on small holdings, since simplified rules are meant to make even modest claims worthwhile.
If You Run Into Problems
- Ask the DP or registrar for a written list of what’s missing or why the request was rejected.
- Escalate to the grievance officer, then to the depository (NSDL or CDSL).
- Use SEBI’s investor complaint platform if the matter isn’t resolved.
- Seek legal advice for disputed or high-value estates.
Frequently Asked Questions
Q1. Do I need a succession certificate to claim inherited shares?
Not for smaller holdings within SEBI’s simplified thresholds, or where a nominee is registered, but larger estates without a nominee usually need succession documents.
Q2. What if the deceased named a nominee?
The nominee follows a lighter process with a transmission request, death certificate, and KYC, though the nominee holds the shares subject to the legal heirs’ rights.
Q3. How long does transmission take?
Typically around 7 days for demat securities and about 21 days for physical securities after complete documents are received, though real-world times vary.
Q4. Is there tax on inheriting shares in India?
Inheritance itself isn’t taxed under current rules, but capital gains tax applies when you sell, so consult a tax professional.
Q5. Can I sell the shares right after the account holder dies?
No, the securities must first be transmitted into a demat account in your name before they can be sold.
