Transmission of Shares: A Complete Guide for Legal Heirs
The loss of a loved one is always a difficult time, and handling financial matters like share transmission can feel overwhelming. When a shareholder passes away, their shares do not automatically transfer to their family members. Instead, the legal heirs must initiate a formal transmission process to claim ownership of the shares.
Share transmission is different from a regular share transfer, as it occurs due to inheritance rather than a sale or gift. It requires compliance with SEBI regulations, submission of legal documents, and verification by the company’s Registrar & Transfer Agent (RTA) or depository participant (DP) for Demat shares.
Many investors are unaware of the correct procedures, which can lead to delays, legal complications, or even the shares being transferred to the Investor Education and Protection Fund (IEPF). To ensure a smooth transition, it is crucial to follow the correct steps and provide the necessary documentation.
💡 Did You Know? If the transmission process is not completed within a specific time, the unclaimed shares and dividends may be transferred to the IEPF, requiring an additional recovery process.
This guide will help you understand the step-by-step process for a smooth and hassle-free share transmission.
Share transmission occurs when shares are transferred to a legal heir after the death of the original shareholder.
Documents Required for Transmission
📄 Death Certificate of the original shareholder
📄 Succession Certificate/Will/Probate (as applicable)
📄 PAN & Aadhaar of the legal heir
📄 Original Share Certificates or Demat details
Process for Transmission
- Inform the Company/RTA about the demise and submit documents.
- Verification by the RTA (May request indemnity bonds or affidavits).
- Approval & Transfer of Shares to the legal heir’s Demat account.
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