In a major relief for investors and their families, the Securities and Exchange Board of India (SEBI) has simplified the process of transferring shares and securities after the death of an investor.
The new rules are aimed at reducing paperwork, speeding up claim settlements and making it easier for nominees and legal heirs to access investments without lengthy procedures.
New Quick Transfer Facility Introduced
SEBI has approved a new category called Quick Transmission Processing (QTP) for smaller claims.
Under this facility, nominees and legal heirs will be able to claim securities through a much simpler process and with fewer documents.
The QTP facility will be available for:
Claims up to ₹10 lakh for securities held in physical form
Claims up to ₹30 lakh for securities held in demat form
This move is expected to help families receive securities faster without facing unnecessary delays.
Claim Limits Increased Significantly
SEBI has also increased the limits for transferring securities through the simplified documentation process.
For physical shares, the limit per listed company has been raised from ₹5 lakh to ₹10 lakh.
For demat holdings, the limit per beneficiary has been doubled from ₹15 lakh to ₹30 lakh.
With these higher limits, more investors and nominees will be able to use the simplified process instead of going through lengthy legal procedures.
PAN Card No Longer Required
One of the biggest changes is the removal of the PAN card submission requirement.
SEBI noted that PAN details are already available when a demat account is opened, making separate submission unnecessary.
The regulator has also removed the requirement for will certification, aligning the process with recent changes in inheritance laws.
These changes are expected to reduce paperwork and make claim processing much smoother.
Death Certificate Rules Also Relaxed
To make verification easier, SEBI will now accept death certificates that contain QR codes.
Earlier, nominees often had to submit original or specially verified copies of death certificates.
For investors who passed away abroad, SEBI has introduced additional verification options through overseas branches of Indian banks or foreign banks that have arrangements with Indian banks.
This is expected to make the process easier for NRIs and families living outside India.
SEBI Tightens Internal Governance Rules
Apart from simplifying share transfers, SEBI has also approved changes to its employee service regulations.
The regulator will introduce a new code of conduct for its members and strengthen rules related to conflict of interest and disclosures.
These changes have been made based on recommendations from a high-level committee that reviewed SEBI’s existing governance framework.
What Does This Mean for Investors?
The latest reforms are designed to ensure that nominees and legal heirs can access an investor’s securities more quickly and with less documentation.
By increasing claim limits, removing unnecessary paperwork and introducing Quick Transmission Processing, SEBI aims to make the inheritance process simpler and less stressful for families during difficult times.
For investors, the update is also a reminder to keep nominee details updated so that loved ones can benefit from these simplified rules if needed in the future.
