Mumbai- SEBI simplified the procedure for transfer of securities from the account of a deceased person and raised the threshold limit for such transactions in demat format to Rs 5 lakh.
The move is aimed at making transmission of securities in both dematerialised and physical modes more efficient and investor friendly.
Transmission refers to the transfer of securities from the account of a deceased holder to that of surviving joint holder, nominee or legal heir.
Simplifying the process, Securities and Exchange Board of India (SEBI) the threshold value for transmission of demat securities -- in the case of deceased person without a nominee -- has been increased to Rs 5 lakh. Earlier, the limit was Rs 1 lakh.
The changes have been made after reviewing the process followed by share transfer agents and the issuer companies for effecting transmission of securities. In this regard, SEBI also held deliberations with Registrars Association of India (RAIN) and the depositories.
For transmission of securities in physical mode, where the securities are held in single name with a nominee, SEBI asked share transfer agents or issuer companies to follow the standardised documentary requirement specified by it.
This process requires an application in a prescribed format, along with supporting documents, as evidence for the death of the holder.
The additional documents such as identity card and claim of legal ownership to the securities might be sought.
In case the valuation of such securities is over Rs 2 lakh, a succession certificate or probate of will or Letter of Administration or court decree is required.
The timeline for processing the transmission requests for securities held in dematerialised and physical mode would be 7 days and 21 days respectively, after receipt of the prescribed documents.