SEBI Simplifies Securities Transmission Process, Introduces Fast-Track Process For Small-Value Claims

Families inheriting shares and mutual fund investments after an investor's death are about to face significantly less paperwork.

The Securities and Exchange Board of India (SEBI) on Thursday overhauled the framework for transmission of securities, removing the mandatory probate requirement, standardising documentation across all intermediaries and introducing a fast-track process for smaller claims.

The revised framework takes effect from 19 August 2026 and applies across listed companies, registrars and transfer agents, depositories, depository participants and mutual funds.

Quick Transmission Processing For Small Claims

The most practically useful change for retail investors is the introduction of Quick Transmission Processing (QTP), a simplified fast-track mechanism for low-value claims by immediate family members, including spouses, parents, children and parents-in-law:

• Physical securities: QTP applies to claims up to ₹10,000.

• Dematerialised holdings: QTP applies to claims up to ₹30,000.

• Standard simplified framework: Covers claims up to ₹10 lakh in physical form and ₹30 lakh in demat form.

• Listed companies have the option to raise the ₹10 lakh physical threshold further.

Documentation Gets Simpler

Several long-standing paperwork requirements have been streamlined:

• Mandatory probate of will: Removed, in line with recent succession law amendments.

• Separate affidavits and no-objection certificates: Replaced with a single affidavit-cum-NOC.

• QR code-enabled death certificates: Now accepted as valid proof of death.

• Overseas death certificates: Verification can now be done through overseas branches of Indian banks as well as foreign banks that have correspondent banking ties with Indian banks.

• Common documentation forms: All processing entities will now use the same set of forms. This replaces the different documentation requirements followed by various intermediaries.

The 21-Day Processing Window

SEBI has directed all processing entities to complete transmission requests within 21 calendar days of receiving all required documents. Any delay or rejection must be communicated with reasons. Monthly reports must be submitted to the regulator for six months after the framework comes into force.

Physical securities that are successfully transmitted will be subject to mandatory dematerialisation, with holdings credited directly to the claimant's demat account.

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