Demat accounts can be held by a single individual or jointly. In case of death of the single account holder or one of the joint holders, rules of transmission will apply with respect to the securities held in the demat account. The surviving joint holders, nominee or legal heirs of the deceased account holder need to approach the Depository Participant (DP) with the requisite papers for transmission process of the securities. However, if shares were held in physical form, one would have to approach each company.
Nomination exists
If a single demat account holder dies leaving a nominee, the transmission procedure is simple. The nominee is required to submit a duly filled in transmission form and a notarised copy of death certificate duly attested by a Gazetted Officer or a Notary Public. The form can be obtained from the DP office or can be downloaded from the DP website. The DP verifies the submitted documents and if found in order, transmits the securities to the DP account of the nominee.
No nomination
In case of death of a singly-held demat account holder with no nominee registered, securities will be transmitted to legal heirs of the deceased as determined by the order of a competent court. If value of securities are less than `1 lakh, the transmission request may be processed on submission of transmission form, attested death certificate copy, a letter of indemnity, an affidavit in the prescribed format and NOC from all legal heirs who do not object to transmission.
Jointly held accounts
For jointly held accounts, the securities are transmitted to surviving holders on submission of the duly filled transmission form, and duly attested copy of the death certificate of the deceased holder. For transmission of securities, the surviving holders need to have or open a separate DP account with names in the same sequence in which the names appear in the joint account to be closed.
Registering a nomination for a demat account helps eliminate the need for documents such as will, succession certificate for transmission of securities.
The nomineelegal heirs are required to have a DP account if not already there.
As an alternative to NOC, attested copy of a family settlement deed can be provided.
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