Discussions

The SEBI circular on transmission of shares provides clear regulatory guidance on how securities are transferred to legal heirs or nominees after the death of a shareholder. Issued to simplify and standardize the process, this circular aims to protect investor interests while reducing procedural delays faced by families.

As per the SEBI circular on transmission of shares, listed companies and their Registrars and Transfer Agents (RTAs) must follow uniform documentation requirements. In cases where the value of shares is within the prescribed limit, legal heirs may complete transmission with minimal documents, such as a death certificate, affidavit, and indemnity bond. For higher-value holdings, succession certificates, probate, or letters of administration may be required.

The circular also encourages faster processing timelines and greater transparency by mandating clear communication between RTAs and claimants. Additionally, it promotes dematerialization of shares to ensure secure and efficient transmission.

Overall, the SEBI circular on transmission of shares simplifies inheritance-related share transfers, reduces investor hardship, and ensures a smooth transition of ownership in compliance with regulatory standards.