Transmission of Securities in Demat Accounts: Processes for Jointly Held Accounts and Nomination Scenarios
Jointly Held Demat Account
The surviving holder(s) need to fill out the transmission form and submit it along with a notarized copy of the death certificate to the depository participant (DP). If the NRI investment in share market is jointly held, this ensures that the assets are transferred to the rightful beneficiary. This process is essential for mutual funds for NRI investors as well, ensuring smooth transitions of assets in the event of unforeseen circumstances.
The surviving holder(s) can then open a new demat account or request transmission to an existing account.
Account with Nomination
The nominee can request the transfer of securities by submitting a transmission form and a certified copy of the death certificate to the DP. The nominee’s rights are critical when it comes to NRI investment in share market as it simplifies the inheritance process for mutual fund investment by NRI.
Account without Nomination
The legal heirs need to submit the transmission form along with:
- Notarized copy of the death certificate
- Succession certificate or court order (if no will)
- Probate or letter of administration (if there is a will)
If the above documents are unavailable and the securities value is less than ₹1 lakh, the DP can process the request with:
- Indemnity letter with independent surety guarantee
- Affidavit on stamp paper
- No Objection Certificate from all legal heirs
In such situations, FD in India for NRI could be another viable alternative for NRIs who want to secure their investments in case of unfortunate events. Alternative asset funds like AIF alternative investment funds may also be considered for wealth protection.
Also Read: Can Alternative Asset Funds Help You Beat Market Volatility?