SEBI’s updated share transmission rules drastically simplify the process of inheriting shares by slashing paperwork and boosting claim limits.
Key Changes
- Higher Limits: Simplified documentation caps doubled to ₹10 lakh (physical) and ₹30 lakh (demat).
- Super Fast Route: A new “Quick Transmission” track applies to claims under ₹10,000 (physical) and ₹30,000 (demat).
- Less Paperwork: No more mandatory will probates, PAN card requirements, or separate NOC affidavits.
- Speedy Payouts: Registrars and intermediaries must process valid claims within 21 days.
SHARE TRANSMISSION & SUCCESSION GUIDELINES (SEBI)
SEBI’s New Share Transmission Rules What changes for your family—and when
| Effective 22 Aug 2026 | Applies only where there is no dispute among legal heirs. |
❶ QUICK TRANSMISSION PROCESS (QTP)
SHARE CERTIFICATE ➔ LEGAL HEIRS ➔ DEMAT ACCOUNT
| Fast route for small holdings Type Limit Physical shares: ₹10,000 Demat holdings: ₹30,000 | Eligible relatives • Parents • Spouse • Children • Parents-in-law | Documents Required • Transmission request form-cum-undertaking • Client Master List • Death certificate • Relationship proof No longer required: No indemnity bond • No affidavit-cum-NOC | Important Siblings & grandchildren are not eligible for QTP. |
❷ HIGHER LIMITS FOR SIMPLIFIED DOCUMENTATION
| Holding | Old | New |
| Physical | ₹5 lakh | ₹10 lakh |
| Demat | ₹15 lakh | ₹30 lakh |
• Thresholds last revised in April 2022.
• Companies may prescribe limits above ₹10 lakh for physical shares.
❸ A NOMINEE IS NOT THE OWNER
Nominee ➔ Receives securities ➔ Acts as Trustee ➔ Legal heirs remain the owners
Common myth:
Nominee does not automatically inherit the investments.
The new rules reduce paperwork—
but they do not change inheritance law.
JOINT HOLDINGS ARE NOW MUCH SIMPLER
Process Flow:
• Joint Holders ──(Upon death)──> Securities transfer directly ──> Surviving joint holder Upon the death of a joint holder, securities are transferred directly to the surviving joint holder without cumbersome procedural delays.
No fresh:
- KYC
- Indemnity
- Undertaking
Only required: Death Certificate
2 LESS PAPERWORK
| Probate of a will No longer mandatory | One affidavit-cum-NOC Replaces multiple affidavits | QR-enabled death certificates Accepted | Foreign death certificates Wider verification allowed |
PHYSICAL SHARES MUST MOVE TO DEMAT
| [Physical Share Certificate] ──> [Transmission Approved] ──> [Registrar Dematerialises] ──> [Demat Account] ──> [Old certificate cancelled (“Security issued in dematerialised form”)] |
4 21-DAY DEADLINE
| Timeline: Documents received ──> Transmission completed ──> Within 21 calendar days | If delayed: Entity must: • Inform claimant in writing • Record reasons • SEBI may take action Above-threshold cases: Additional documents allowed only with written reasons. |
BIG TAKEAWAY SEBI has made share transmission faster, simpler and more digital—but planning your nominations and succession remains just as important.
