The National Securities Depository Limited (NSDL) on April 22, 2026, issued circular on Validation of reason codes in respect of off-market transactions.
NSDL has informed participants about a revision in the description of off-market transfer reason code 21, in line with SEBI’s initiative on ease of investment and smooth transmission of securities. The earlier description, “Transfer from Nominee/Surviving Holder to Beneficiary,” has now been updated to “Transmission to Legal Heirs.”
This change aligns with recent SEBI and NSDL circulars aimed at simplifying the process of transferring securities from nominees to rightful legal heirs. The updated description has already been implemented in the NSDL Depository Participant Module.
Participants are required to update their back-office systems accordingly and inform their clients about this change to ensure smooth processing of transmission requests. Assistance for any queries is available through NSDL support channels.
[Circular No.: NSDL/POLICY/2026/0060]
