The Securities and Exchange Board of India (SEBI) has introduced a revised framework intended to make the transmission of listed securities and mutual-fund units more standardised, risk-based and investor-friendly.
Issued on 23 July 2026, the framework came into effect on 22 August 2026. It introduces a low-value Quick Transmission Processing category, raises the limits for simplified documentation, standardises forms and sets a processing timeline after all required documents are received.
The framework is relevant to nominees, surviving joint holders and eligible legal heirs seeking transmission after the death of a sole holder or all joint holders. The applicable route and documents still depend on the mode and value of the holding, nomination status, relationship to the deceased and whether any competing claim exists.
The complete requirements can be reviewed in SEBI's circular on simplification and standardisation of the framework for transmission of securities, dated 23 July 2026.
What has SEBI changed?
SEBI has revised the transmission process for listed securities and units issued by Asset Management Companies after the death of a holder. Listed companies, Registrar and Share Transfer Agents, depositories, Depository Participants and Asset Management Companies are required to follow the framework.
The changes create a faster route for certain low-value claims, prescribe standard model forms, clarify documentation and set a maximum processing period after a complete set of documents has been received.
What is transmission of securities?
Transmission is the process through which securities are moved after the death of a holder—for example, to a surviving joint holder, nominee or eligible legal heir. It is different from a voluntary transfer made by a living holder.
The revised framework covers listed securities and units issued by Asset Management Companies after the death of a sole holder or all joint holders. The applicable process depends on the facts of the claim and the supporting records available.
Quick Transmission Processing for low-value claims
SEBI has introduced Quick Transmission Processing (QTP) for specified low-value claims. For physical securities, the QTP threshold is up to ₹10,000. For dematerialised securities, it is up to ₹30,000.
For physical securities, the thresholds apply per listed entity or to eligible units held in Statement of Account form per AMC. For dematerialised securities, they apply per beneficial owner. A listed entity may, at its discretion, increase the ₹10 lakh simplified-documentation threshold for physical securities.
The claimant is to determine the value of listed securities using the previous closing price on any recognised stock exchange. For units issued by an AMC, the last available Net Asset Value is considered.
QTP is available only to specified immediate relatives—parents, spouse, children and parents-in-law. The claimant must provide the prescribed request-cum-undertaking, proof of relationship and the common documents applicable to the claim.
Standard forms and clearer document requirements
The revised framework prescribes model forms for different transmission situations. Depending on the claim, the required documents may include:
- A transmission request-cum-undertaking for QTP claims.
- A transmission request form for other claims.
- A notarised indemnity bond.
- A combined notarised affidavit-cum-No Objection Certificate, where applicable.
A death certificate carrying a verifiable QR code is an eligible form of proof, in addition to the other prescribed original or attested versions. The framework also specifies additional verification routes for death certificates issued outside India.
The circular removes a mandatory requirement for probate of a Will. This does not mean that every transmission claim is document-free. The exact documents continue to depend on the claim category, value and circumstances.
Claims above the simplified-documentation threshold may require a Will with an indemnity bond, a legal-heirship certificate with an indemnity bond, or a succession certificate, letter of administration or court decree, as applicable.
The 21-calendar-day processing timeline
Once all required documents have been received, the processing entity must process the transmission case within a period not exceeding 21 calendar days, unless SEBI specifies another period.
If the request is delayed or rejected, the claimant must be informed of the reasons in writing.
The 21-day period begins only after all documents required for the particular claim have been received. An incomplete application may therefore take longer overall.
Simpler treatment for a surviving joint holder
Where one or more joint holders have died, the rule of survivorship continues to apply, subject to the company's Articles of Association.
For transmission to the surviving joint holder or holders, the processing entity should not seek KYC papers, indemnities or undertakings from the survivor. It may, however, seek the deceased holder's death certificate.
Physical securities are credited in demat form
After a physical-security transmission request is verified and processed, the processing entity is to initiate dematerialisation for direct credit to the claimant's demat account.
A claimant dealing with old physical share certificates should therefore check the demat-account and Client Master List requirements at an early stage.
What claimants should consider doing
- Identify whether the holding is physical, dematerialised or in Statement of Account form.
- Check whether a valid nomination exists and whether there are surviving joint holders.
- Obtain the current claim forms and document list from the relevant company, RTA, Depository Participant or AMC.
- Confirm the value and claim category—QTP, simplified documentation or above threshold.
- Arrange a demat account and latest Client Master List where required.
- Keep the acknowledgement and written confirmation showing when all required documents were received.
The revised framework does not apply where there is a dispute or competing claim. Such cases may require resolution through an appropriate legal or judicial process.
Why an initial document review can help
Old investments often involve differences in names, addresses, signatures, certificates, nomination records or family documents. Identifying these issues before filing can reduce avoidable back-and-forth with the company, RTA, Depository Participant or AMC.
The correct process varies with the facts and documents available. An initial assessment can help determine the applicable claim category and the next practical step.
Frequently Asked Questions
When did SEBI's revised transmission framework become effective?
The circular was issued on 23 July 2026 and became effective on 22 August 2026, calculated as 30 days from the circular's date.
What is Quick Transmission Processing?
Quick Transmission Processing is a simplified route for specified low-value claims made by eligible immediate relatives. The threshold is up to ₹10,000 for physical securities and up to ₹30,000 for dematerialised securities.
Does every claimant qualify for QTP?
No. QTP is limited to specified immediate relatives—parents, spouse, children and parents-in-law—and applies only when the claim is within the relevant value threshold and the prescribed documents are provided.
Does the 21-day period start when the first document is submitted?
No. The processing period begins after all documents required for the particular transmission claim have been received.
Is probate of a Will mandatory in every transmission case?
No. The revised framework removes a blanket mandatory requirement for probate of a Will. Other claim-specific documents may still be required depending on the value, category and facts of the case.
What happens after transmission of physical securities?
After the request is verified and processed, the processing entity is to initiate dematerialisation so that the securities can be credited directly to the claimant's demat account.
Conclusion
SEBI's revised framework, effective from 22 August 2026, creates a more structured transmission process through low-value QTP limits, higher simplified-documentation thresholds, standard forms and a defined processing timeline.
Nominees, surviving joint holders and legal heirs should still obtain the latest case-specific requirements before filing. The applicable documents depend on the holding type, value, nomination status, relationship and whether any dispute or competing claim exists.
Need help understanding a securities-transmission case?
Vitta Samadhan assists investors, nominees and legal heirs with document assessment and process support for physical shares, transmission matters, unclaimed dividends and IEPF-related cases.
Visit www.vittasamadhan.com, call or WhatsApp 9312747174, or email support@vittasamadhan.com to request an initial assessment.
Disclaimer
This article is intended for general information and investor awareness only. It does not constitute legal, financial or investment advice. Investors, nominees and legal heirs should verify their individual eligibility, documentation and applicable procedures with the relevant listed entity, Registrar and Share Transfer Agent, Depository Participant, Asset Management Company and SEBI before taking action.