How to Claim Transmission of Securities by Legal Heirs Under SEBI's Simplified Framework 2026

When a holder of securities passes away, the transfer of those securities to legal heirs is known as "transmission" rather than "transfer." SEBI's simplified framework, effective August 19, 2026, significantly reduces the documentation burden for legal heirs claiming transmission of shares, debentures, mutual fund units, and other securities. This guide walks through the process step by step, covering the Quick Transmission Processing (QTP) route for small claims, the simplified documentation framework for medium claims, and the standard process for larger holdings.

Step 1: Determine Which Route Applies to Your Claim

The framework establishes three tiers based on the value of securities held with each entity (company, RTA, depository participant, or mutual fund/AMC). Identify which tier your claim falls into:

Quick Transmission Processing (QTP) applies to claims up to Rs 10,000 for physical securities or Rs 30,000 for dematerialised (demat) securities. This is the fastest route with minimal documentation.

Simplified Documentation Framework applies to claims up to Rs 10 lakh for physical securities or Rs 30 lakh for demat securities. This requires more documentation than QTP but significantly less than the earlier process.

Standard Process applies to claims above the simplified framework thresholds. This follows the existing transmission procedure, which may require probate or succession certificate depending on the applicable personal law.

In practice, most retail investors' holdings will fall within the simplified framework thresholds. The QTP route is designed for the many small, forgotten holdings (a few shares in a company from decades ago) that previously were not worth the effort to claim due to the paperwork involved.

Step 2: Gather the Required Documents

For QTP (Small Claims)

You will need the death certificate of the deceased holder (QR-code enabled digital death certificates are accepted under the new framework), a self-attested copy of the claimant's PAN card, a self-attested copy of the claimant's Aadhaar card or other KYC document, and a simple application form provided by the entity (RTA, depository participant, or AMC).

No affidavit, indemnity bond, or surety is required for QTP claims. No probate or succession certificate is required.

For Simplified Documentation Framework (Medium Claims)

You will need the death certificate, KYC documents of the claimant, and a single affidavit-cum-NOC (No Objection Certificate). The single affidavit-cum-NOC is a key innovation of the 2026 framework. Previously, claimants needed to submit separate affidavits, NOCs from other legal heirs, and indemnity bonds. The new framework consolidates these into a single document where the claimant declares their entitlement and the other legal heirs (if any) confirm their no-objection.

Probate is no longer mandatory for uncontested claims within this tier. This is a significant departure from the earlier position where many entities required probate or succession certificates even for modest holdings, effectively making the claim uneconomical.

Step 3: Identify the Right Entity to Approach

The entity you approach depends on how the securities are held:

For demat shares and debentures, approach your depository participant (DP). The DP will process the transmission through the depository (NSDL or CDSL). For physical shares, approach the Registrar and Transfer Agent (RTA) of the company, or the company directly if it does not have an RTA. For mutual fund units, approach the Asset Management Company (AMC) or the Registrar (typically CAMS or KFin Technologies).

One of the key benefits of the 2026 framework is harmonisation: the same documentation requirements and thresholds now apply across all these entities. Previously, each depository, RTA, and AMC had its own documentation requirements, leading to inconsistency and confusion for claimants.

Step 4: Submit Your Application

Submit the application along with the required documents to the identified entity. For QTP claims, many DPs and AMCs now accept online submissions. For the simplified framework, submission is typically at the DP's or RTA's office, though some entities accept documents by post or through their online portals.

Ensure that the death certificate is an original or a notarised copy. QR-code enabled death certificates issued through the Civil Registration System (CRS) are accepted as valid under the new framework, which eliminates the need for physical verification of the certificate's authenticity.

Step 5: Processing and Timeline

For QTP claims, the entity is expected to process the transmission within 7 working days of receiving complete documentation. For simplified framework claims, the processing time is typically 15 to 30 days. For the standard process (above the simplified thresholds), timelines vary depending on the complexity of succession and the documentation required.

In practice, delays are most common when the submitted death certificate does not match the records (name mismatch between the certificate and the folio/demat account) or when the KYC of the claimant is not up to date. It is advisable to ensure that the claimant's KYC is current before submitting the transmission application.

Step 6: What to Do If the Claim Is Contested

The simplified framework and QTP apply only to uncontested claims. If another legal heir contests the transmission, the entity will require a probate of will or a succession certificate from a competent court before processing the claim. In such cases, the claimant would need to approach the relevant civil court or the High Court (for probate, in jurisdictions where it is mandatory under Section 213 of the Indian Succession Act, 1925).

The Supreme Court in Chiranjilal Shrilal Goenka v. Jasjit Singh, (1993) 2 SCC 507, held that a succession certificate granted under the Indian Succession Act is conclusive as against persons owing the debt or liable to pay, and the entity (company, DP, or AMC) is protected when it acts on a valid succession certificate. This remains the fallback for contested claims even under the new framework.

Key Points to Remember

• The thresholds (Rs 10,000/Rs 30,000 for QTP; Rs 10 lakh/Rs 30 lakh for simplified) are per entity, not aggregate. If you hold securities with multiple companies or DPs, each is assessed separately.

• Nomination registered with the DP or company simplifies transmission further, as the nominee has a preferential claim. However, the Supreme Court in Sarbati Devi v. Usha Devi, (1984) 1 SCC 424 clarified that nomination does not override succession law, and the nominee holds the securities as a trustee for the legal heirs.

• The framework applies uniformly to listed companies, RTAs, NSDL and CDSL depository participants, mutual funds, and AMCs.

• If the deceased held securities jointly with survivorship clause, the surviving holder can claim transmission by submitting the death certificate alone, without the additional documentation required for sole-holder accounts.

Sources and References

• SEBI Circular on Simplified Framework for Transmission of Securities, effective August 19, 2026

• Indian Succession Act, 1925, Section 213 (Requirement of probate)

• Chiranjilal Shrilal Goenka v. Jasjit Singh, (1993) 2 SCC 507 (Succession certificate conclusiveness)

• Sarbati Devi v. Usha Devi, (1984) 1 SCC 424 (Nominee as trustee for legal heirs)

• Companies Act, 2013, Section 56 (Transfer and transmission of securities)

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult a qualified legal professional for advice specific to their circumstances.