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.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.