Arun Sinha's blog : Transmission of Shares Made Easy: A Complete Step-by-Step Guide for Legal Heirs
Have you lost a loved one who owned shares? Wondering how to get those shares in your name? The solution lies in the Transmission of Shares – a legal process that allows shares to be passed on to legal heirs or nominees after the death of the shareholder.
In this article, we break down the Shares Transmission Procedure in simple steps, along with how to manage the Demat of Physical Share Certificate if the shares are not already in Demat form.
🔍 What is Transmission of Shares?
Transmission of shares refers to the process of transferring ownership of shares to legal heirs or nominees when the original shareholder has passed away. It is not a sale or transfer in the usual sense – it's a succession process that happens by law.
📄 When is Transmission of Shares Required?
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When a shareholder has passed away.
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When shares are held in joint names, and one holder dies.
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When shares are held physically or in Demat form without a nominee.
📝 Shares Transmission Procedure: Step-by-Step
Here’s a simplified view of the process:
1️⃣ Identify Type of Shareholding
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Demat Shares: If shares are in Demat form, the process is easier via the Depository Participant (DP).
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Physical Shares: Require more paperwork and must be dematerialized after transmission.
2️⃣ Collect Required Documents
Key documents include:
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Death Certificate (original or notarized copy)
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PAN & Aadhaar of legal heir
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Client Master List (for Demat)
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Transmission Request Form (TRF)
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Succession Certificate / Probate / Will (if no nominee)
3️⃣ Submit Application
Submit the above documents to the Company’s RTA (Registrar and Transfer Agent) or Depository Participant, depending on the type of shareholding.
4️⃣ Demat of Physical Share Certificate
If shares are in physical form, the legal heir must first transmit them and then convert them into Demat form for trading or further action. This step is crucial and required by SEBI regulations.
⚠️ Don’t Delay – Unclaimed Shares May Go to IEPF
If shares remain unclaimed or transmission is not initiated on time, they may be transferred to the IEPF (Investor Education and Protection Fund). Once shares are moved to IEPF, recovering them becomes a longer legal process.
🛠 How ShareClaimers Helps You
At ShareClaimers, we simplify the complex legal and documentation process. We provide end-to-end support including:
✅ Legal Document Preparation
✅ Filing Transmission Request
✅ Coordinating with RTAs
✅ Dematerializing Physical Shares
✅ Claiming Shares from IEPF (if already transferred)