In a consultation paper released on March 12, the regulator said the current framework often leads to documentation complexities and inconsistent practices across listed companies, registrars, depositories and other intermediaries, making it difficult for survivors to claim securities.
Currently, simplified documentation for transmission is allowed only up to Rs 5 lakh for physical securities and Rs 15 lakh for dematerialised holdings. The market watchdog has proposed to double these thresholds to Rs 10 lakh for physical holdings and Rs 30 lakh for dematerialsed holdings.
In addition, the regulator has proposed a new straight-through processing mechanism for small claims, allowing minimal documentation for holdings up to Rs 10,000 in physical securities and Rs 30,000 in demat accounts. The measure is expected to help investors where the cost of documentation may exceed the value of the securities themselves.
The proposals come amid feedback from investors and intermediaries that the existing process is cumbersome, particularly in cases where a nominee or will is absent. Obtaining probate of wills or succession certificates often involves lengthy legal procedures and delays in accessing inherited assets.
The regulator noted that recent legal changes have also made reforms timely. With the abolition of mandatory probate requirements under Section 213 of the Indian Succession Act 1925 for several communities in Mumbai, Chennai and Kolkata, Sebi has proposed removing the requirement of probated wills in many transmission cases.
To further streamline the process, Sebi has suggested standardised documentation and procedures across all entities involved in handling transmission requests, including listed companies, registrars, depositories and asset management companies. These entities will also be required to process transmission claims within 21 calendar days from receipt of all required documents.Additionally, the regulator has proposed expanding acceptable proof of death in overseas cases, including certification by foreign banks or overseas branches of Indian banks, making it easier for families of investors who passed away abroad.
The market regulator has invited public comments on the proposals until April 2, 2026.
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