When a loved one passes away, handling financial matters can feel overwhelming. One important process you may come across is Transmission of Shares. Understanding the correct Shares Transmission Procedure can help you transfer ownership smoothly and avoid unnecessary delays.
In this guide, we explain everything in simple language – including how Demat of Physical Share Certificate plays a role in the process.
What is Transmission of Shares?
Transmission of Shares refers to the transfer of shares from a deceased shareholder to their legal heir or nominee. Unlike transfer of shares (which happens through sale or gifting), transmission happens due to death, insolvency, or succession by law.
This process ensures that the rightful person becomes the legal owner of the shares.
Transmission of Shares vs Transfer of Shares
Many people confuse transfer and transmission. Here’s the simple difference:
Transfer of Shares – Voluntary act (sale or gift), requires a transfer deed.
Transmission of Shares – Involuntary act (due to death), does not require a transfer deed.
Transmission is handled based on legal documents and company procedures.
Shares Transmission Procedure – Step-by-Step Guide
The Shares Transmission Procedure depends on whether the shares are held in demat form or physical form.
1. If Shares Are Held in Demat Form
For shares held in a Demat account:
Inform the Depository Participant (DP)
Submit death certificate (attested copy)
Provide KYC documents of nominee/legal heir
Submit transmission request form
In case of no nominee, provide succession certificate or probate of will
After verification, the shares are transferred to the nominee’s or heir’s demat account.
2. If Shares Are Held in Physical Form
If the deceased held physical share certificates, the process includes:
Submission of original physical share certificates
Attested copy of death certificate
Indemnity bond and affidavit
Succession certificate or probate (if no nominee)
After approval, the company registers the shares in the heir’s name.
However, since SEBI regulations now mandate demat holdings, you may also need to complete the Demat of Physical Share Certificate process.
Demat of Physical Share Certificate – Why It’s Important
The Demat of Physical Share Certificate means converting paper share certificates into electronic form.
Today, most companies do not allow transfer of physical shares unless they are converted into demat form. So, after transmission approval, heirs may need to:
Open a Demat account
Submit dematerialization request form (DRF)
Provide physical share certificates
Complete verification process
Once converted, shares are credited electronically to the Demat account.
This makes holding and managing shares safer, easier, and faster.
Documents Required for Transmission of Shares
Here is a quick checklist:
Death certificate of shareholder
PAN card of nominee/legal heir
Aadhaar or ID proof
Transmission request form
Succession certificate or probate (if applicable)
Original physical share certificate (if held physically)
Proper documentation helps avoid rejection or delay.
Final Thoughts
The Transmission of Shares process may look complicated, but with the right understanding and proper documentation, it becomes manageable. Whether dealing with demat shares or completing the Demat of Physical Share Certificate, following the correct Shares Transmission Procedure ensures a smooth and legal transfer.
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