1. What does transmission mean in relation to demat accounts?
Transmission is the process by which securities of a deceased account holder are transferred to the account of the legal heirs / nominee of the deceased account holder. Process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to your DP whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to correspond with all the each company in which shares are held independently.
2. What is the procedure for transmission of securities to the nominee in case of the death of the account holder?
In case of the death of the sole holder, for the purpose of transmission of securities, the nominee has to submit a duly filled-in transmission form, notarised copy of death certificate and an affidavit in the prescribed format. After verifying these documents, the DP will transmit the securities to the account of the nominee.
3. What would happen if no nomination is made for the account?
In case nomination is not made, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. However in cases where the value of securities to be transmitted is less than Rs. 1,00,000/- the DP may process the request based on submission of necessary letter of indemnity , surety , affidavits and NOC documents.
4. What is the procedure for transmission in case of Joint Accounts?
In the event of death of one of the joint holders , the securities will be transmitted to the surviving holder(s) on submission of Transmission Form and notarised copy of the death certificate of the deceased joint holder to the DP. For transmission of securities , the account of the surviving holder(s) must be in the same sequence in which the names appear in the joint account to be closed.