What is Transmission of shares and when should it be used?
Transmission is basically the transfer of ownership of shares from a deceased holder to a) Nominee b) legal heir or legal representative or c) the surviving joint holder
Process of Transfer
Nominee
Transmission is easiest when the demat account has a nominee assigned. In the event of the death of beneficiary holder(s) of demat account, the nominee needs to provide duly filled
a) Transmission form
b) certified true copy of death certificate of the demat account holder(s) and
c) Client Master List of the Nominee's demat account if the account is maintained with Other depository participant. This is not needed if the nominee has a demat account within Tradeplus.
Legal heir or Legal representative
For a legal heir to inherit shares of the deceased holder, they need to submit the following
a) Transmission form
b) Copy of notarized death certificate duly signed by Claimant(s)
c) Copy of notarized Succession Certificate or
d) An order from a court of competent jurisdiction in case the deceased has not left a Will or
e) Copy of Notarized Probate or Letter of Administration
f) Client Master List of the demat account to which the shares are to be transferred. This can be ignored if the demat account is with us.
If the legal heir or representative does not have either of the documents mentioned in c), d) and e) above documents, we process the request if the value of shares to be transferred is less than 1 lakh in terms of market value on the date of transfer, with the following
a) Transmission form
b) Copy of notarized death certificate
c) Letter of Indemnity duly supported by a guarantee of an independent Surety acceptable, made on appropriate non judicial stamp paper
d) An Affidavit made on appropriate non judicial stamp paper and
e) No objection certificate(s) from all the legal heir(s) who do not object to such transmission
'Transmission cum Demat' can also be used when one of the joint holders mentioned in the share certificate (held in physical form) is no more and the survivors wish to have the securities transmitted in their name in demat form. Using this facilit,the twin objective of deleting the of name of deceased joint holders and dematerialization of securities can be achieved in a single step. This is explained in the diagram
Points to Nore
- Once Navia gets appropriate documents, the transmission process will take 7 working days. Any legal explanation will take at least 15 days.
- Lock-in shares will be transferred to the successor NSDL demat accounts. This will take at least 30 days.
- A photocopy or soft copy of the digital death certificate will be accepted if it is available on the government portal.
- If a photocopy of the death certificate is accessible on the government website, it might be considered. By creating a ticket, clients can share the official URL where the death certificate can be read or obtained.
- The credit fund balance of the deceased will be transferred to the successor or nominee’s bank account mentioned in the CMR. If the deceased has a debit balance, the successor/nominee must provide a cheque in the name of Navia Markets Ltd.
- The deceased's name should be consistent with the CMR and death certificate. If not, file a notarized statement of name mismatch.
- The successor/nominee's name should match the CMR. If not, submit the name mismatch notarised affidavit.
- If the nominee/successor/legal heir is a minor, a guardian certificate must be provided in order for the guardian's signature to be considered in the form. If a minor has an account with Navia, a guardian certificate is not necessary.Also Read
Can I de-materialize shares held by a single owner into a joint demat account?
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