Claiming shares after a family member's death gets easier under new SEBI rules

The Securities and Exchange Board of India (SEBI) has approved comprehensive reforms to the framework for transmission of securities, aimed at facilitating "faster and easier transmission of securities to legal heirs/claimants of deceased investors".

"A new category of Quick Transmission Processing (QTP) for small-value claims (up to ₹10 thousand for physical holdings and up to ₹30 thousand for dematerialised holdings) has been introduced to facilitate efficient processing of such claims with minimal documentation," SEBI said.

The regulator also doubled the limits for simplified documentation, from ₹5 lakh to ₹10 lakh for physical holdings per listed company and from ₹15 lakh to ₹30 lakh for dematerialised holdings per beneficial owner.

The revised framework introduces several documentation and process-related simplifications that, according to SEBI, will reduce the procedural burden for claimants while improving operational efficiency for intermediaries.

• Removal of the requirement to submit PAN, as PAN details are already available for opening demat accounts.

• Dispensing with the mandatory requirement of probate of a will, in line with recent amendments to succession laws.

• Allowing a combined affidavit-cum-NOC instead of separate affidavits and no-objection certificates.

• Accepting QR code-enabled death certificates in addition to original or attested copies for easier verification.

• Specifying additional verification mechanisms for death certificates issued in foreign jurisdictions through overseas branches of Indian banks or foreign banks having correspondent banking relationships with Indian banks.

"The approved measures are expected to facilitate easier and faster transmission of securities and reduce costs and procedural hardship for claimants," SEBI said.

When will the new rules take effect?

The regulator added that the proposals were deliberated with the Industry Standards Forum for Registrars to an Issue and Share Transfer Agents and the Association of Mutual Funds in India (AMFI), and incorporate feedback received on the consultation paper issued on March 12, 2026.

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