How nominees claim shares after a demat holder’s death comes down to a short, document-light process: the nominee gives their depository participant a transmission request form, a notarised or attested death certificate, their own KYC and details of a demat account to receive the shares, and no succession certificate, indemnity bond or probate is needed. The shares move in-kind into the nominee’s account, and processing is meant to take days, not months, although the exact deadlines and value thresholds for non-nominee claims were changing in 2026. This is general information, not legal or tax advice.
The Process in Brief
- Who claims: the registered nominee, when there is no surviving joint holder
- Where: the nominee’s own depository participant, or the registrar for physical shares
- Core papers: transmission request form, death certificate, nominee’s KYC and demat account details
- Not needed: succession certificate or probate, according to a 2026 explainer
- Timeline: about 7 days at the depository participant under older rules, with a 21-day registrar deadline under the newer framework, and 15 to 30 days in practice
What “Transmission” Means
It isn’t a sale.
- Transmission means the transfer of securities from the account of a deceased holder to that of a surviving joint holder, nominee or legal heir, according to Business Standard’s report of the SEBI circular
- The shares move in-kind to the nominee’s demat account, according to Antim Services
- You can’t receive shares in cash, so the nominee must have a demat account of their own, according to Motilal Oswal
The Three Starting Positions
Who claims depends on how the account was held.
- Joint account: securities pass to the surviving holder or holders by deletion of the deceased’s name, according to InvestingPro
- Single holder with a nominee: the nominee claims using a transmission request form and the death certificate
- Single holder without a nominee: legal heirs claim, with documents scaling with value, according to the same source
- This piece focuses on the nominee route, which is the easy one
Documents the Nominee Needs
The list is short.
- A transmission request form, available from the depository participant, according to Anand Rathi
- A notarised copy of the death certificate, or one attested by a Gazetted Officer, according to Share India
- The nominee’s own KYC, and a client master report of the demat account that will receive the securities, according to InvestingPro
- Bank proof may be asked for in addition, according to Ezylegal
- Bonddekho’s guide also lists a notarised affidavit by the nominee, which other sources don’t require, so ask your depository participant what it actually insists on
What the Nominee Doesn’t Need
That’s the whole point of nomination.
- In case of the holder’s death, transmission to nominees requires basic verification only, with no need for succession certificates, probate of wills or indemnity bonds, according to Ezylegal
- Where there’s a registered nominee, no succession document is needed at all, according to SharesRecover’s 2026 explainer
Step by Step
A simple sequence works.
- Tell the depository participant about the death and ask for the transmission request form
- Get the death certificate notarised or attested
- Open a demat account if the nominee doesn’t have one, and get the client master report
- Submit the form, certificate and KYC documents
- Follow up until the shares are credited to your account
- Review what you’ve received and plan what to do with it
Where to Apply
It depends on how the shares are held.
- For demat holdings, approach the depository participant, and for mutual funds the asset management company or its registrar, according to Ezylegal
- For physical share certificates, the nominee submits the prescribed form and death certificate to the company’s registrar and transfer agent, according to Anand Rathi
How Long It Takes
The deadlines are shifting.
- Under older rules, the timeline for processing was 7 days for demat securities and 21 days for physical, after receipt of the prescribed documents, according to Business Standard’s report
- Anand Rathi says the depository participant typically processes in 7 working days, with proposed reforms standardising a 21-calendar-day deadline
- Under the 2026 framework, the registrar must process the request within 21 calendar days of receiving all required documents, with written reasons for any delay or rejection, according to SharesRecover
- End to end, 15 to 30 calendar days is typical when a nominee is registered and documents are complete, according to Antim Services
The 2026 Circular
There’s a recent rule change.
- SharesRecover says SEBI circular HO/38/13/11(14)2026-MIRSD-POD/I/17111/2026 is dated 23 July 2026 and takes effect thirty days from issue, which would be 22 August 2026
- It describes doubled thresholds and a 21-day deadline, but I haven’t read the circular itself, so confirm the details with your depository participant
- Anand Rathi’s page mentions SEBI’s proposed reforms to raise the simplified-documentation threshold from ₹15 lakh to ₹30 lakh, which fits that picture
The Value Thresholds, If There’s No Nominee
They matter for family members who aren’t named.
- SEBI raised the demat threshold from ₹1 lakh to ₹5 lakh per beneficiary account in an older circular, according to India Infoline and Business Standard’s 2013 report
- Other sources cite ₹15 lakh as the current simplified-documentation threshold, according to Anand Rathi, Motilal Oswal and Ezylegal, with the next step proposed at ₹30 lakh
- So the figures depend on the date of the source, and the Business Standard page carries a 2025 date stamp but reports a much older decision, so don’t rely on its numbers
- Below the threshold, heirs generally provide an affidavit, indemnity bond and no-objection certificates, and above it a succession certificate or probate, according to Motilal Oswal
If the Account Was Joint
It’s even simpler.
- The surviving holder submits a request with a notarised death certificate, and the deceased’s name is removed, leaving the holdings intact, according to InvestingPro
- The surviving holder doesn’t need to transfer the shares to a new account, and the existing account continues with their name as sole holder, according to Antim Services, though Motilal Oswal says the survivor needs a demat account if they don’t have one
Tax on Transmission
It generally isn’t a taxable event.
- InvestingPro’s headline says transmission triggers no capital-gains tax, which fits the logic that passing shares to a nominee isn’t a sale
- Tax arises when the nominee later sells, and the nominee should keep the original purchase records, though these sources don’t spell out how cost and holding period carry over
- A chartered accountant can confirm how the cost basis applies to your case
Nominee Versus Heir
An important caution.
- Being the nominee gets the shares into your account easily, but it isn’t always the same as being entitled to keep them against other legal heirs
- As I understand it, courts have generally treated a nominee as holding the assets for the benefit of those entitled under succession law, so a will or the family’s agreement may still matter, though these sources don’t cover it
- Talk to the family and a lawyer if there’s any dispute
Practical Tips for Families
A few habits make it easier.
- Don’t trade or transfer from the deceased’s account yourself
- Collect the account statement, the depository participant’s contact and the PAN
- Order several copies of the death certificate
- Check dormant or forgotten holdings through a depository statement
- Expect corporate actions such as dividends and splits to credit to the old account until transmission is done
Where the Sources Disagree
Some points aren’t settled.
- The current simplified-documentation threshold, which ranges from ₹5 lakh to ₹15 lakh and a proposed ₹30 lakh
- Whether the nominee must also file a notarised affidavit
- The deadline, 7 days or 21 days, depending on the depository participant, registrar and rule version
- Many are broker and legal-blog pages, so ask your depository participant for the latest SEBI circular
FAQs
Q1. How do nominees claim shares after a demat holder’s death?
Submit a transmission request form, a notarised death certificate, your KYC and your demat account details to your depository participant. No succession certificate is needed.
Q2. How long does transmission take?
Older rules set 7 days at the depository participant, a 2026 framework sets 21 calendar days for registrars, and practical timelines run 15 to 30 days.
Q3. Do nominees need a demat account?
Yes. Securities move in-kind, so the nominee must have a demat account to receive them, and can open one with any depository participant.
Q4. Is tax due when shares are transmitted to a nominee?
Transmission itself isn’t treated as a sale, so no capital gains tax arises then, but tax applies when the nominee later sells the shares.
