The capital markets regulator, the Securities and Exchange Board of India (Sebi), has simplified the procedure for transmission of securities to the nominees or legal heirs after the holder’s demise. It has also standardisation the formats for the documentation of the process, besides enhancing the limit for simplified documentation.
Transmission of securities comes into play when the sole holder of the security has deceased, and his next legal heir or nominee or any other person named in his Will receives the securities. It is not the same as transfer of securities.
“As an on-going measure to enhance ease of dealing in securities markets and with a view to make the transmission process more efficient and investor-friendly, the procedure for transmission of securities has been further simplified,” Sebi said in the circular.
Sebi has also enhanced the monetary limits for simplified documentation for the transmission of securities.
If anyone is holding securities in physical mode, then the current threshold limit for simplified documentation of Rs 2 lakh will be enhanced to Rs 5 lakh.
If the securities are being held in demat mode, then the existing limit of Rs 5 lakh has been increased to Rs 15 lakh for each beneficiary account.