The Securities and Exchange Board of India (SEBI) has announced major changes to the rules for transferring securities such as shares
and mutual funds after the death of an investor. The new rules are aimed at making the process faster, simpler, and less expensive for legal heirs.
The changes were approved during SEBI’s board meeting on June 19. The regulator said the updated framework will reduce paperwork, lower compliance costs, and help families access investments with fewer delays.
Higher Claim Limits with Less Documentation
One of the biggest changes is the increase in the value limits for claims that can be processed with minimal documentation.
For physical holdings in a listed company, the limit has been increased from ₹5 lakh to ₹10 lakh.
For demat holdings, including shares, mutual funds, gold ETFs, and other securities, the limit has been raised from ₹15 lakh to ₹30 lakh.
This means legal heirs can now claim larger investment amounts without going through lengthy documentation procedures.
PAN Details No Longer Required
SEBI has also removed the requirement to submit PAN details while transferring shares, mutual funds, and other securities.
According to the regulator, PAN information is already collected when a demat account is opened. As a result, asking heirs to submit the same information again was unnecessary.
This change is expected to make the transfer process quicker and more convenient.
No Need for Probate of a Will
Another major relief for families is that probate of a will will no longer be required in many cases.
Probate is a court-issued certificate that confirms a will is genuine and legally valid. Obtaining probate often takes several months and can involve significant legal expenses.
By removing this requirement, SEBI aims to reduce delays and legal hurdles for heirs trying to access investments left behind by deceased family members.
Simpler Paperwork and Faster Verification
SEBI has also simplified the documentation process.
A single affidavit-cum-No Objection Certificate (NOC) will now replace the separate affidavit and NOC that were previously required.
In addition, authorities will now accept death certificates with QR codes, along with original or attested copies. This will make verification easier and help speed up claim processing.
These changes are expected to make the transfer of shares and mutual funds much smoother for legal heirs, ensuring that families can access investments with less paperwork and fewer legal complications.
