The Securities and Exchange Board of India (SEBI) on July 23, 2026, issued circular on Simplification and standardisation of the framework for transmission of securities.
SEBI has revised the framework governing transmission of securities—the process by which securities are transferred to legal heirs or nominees following the death of a holder—in order to make the process more efficient, standardised, and investor-friendly. The revision is issued under Regulation 40(7) of the LODR Regulations, 2015, following a Gazette Notification dated July 10, 2026, and applies to all processing entities, including listed companies, RTAs, Depositories, DPs, and AMCs.
The central change is the introduction of a harmonised, risk-based process along with a new category called Quick Transmission Processing (QTP), meant for small investors with low-value claims. Under the revised thresholds, QTP will apply to claims up to ₹2,000 for physical securities and ₹30,000 for dematerialised holdings, while the simplified documentation route will now cover claims up to ₹10 lakhs (physical, with entities allowed to raise this limit at their discretion) and ₹30 lakhs (demat), a significant increase from earlier limits.
Documentation requirements have also been eased considerably. The mandatory requirement for a Probate of Will has been removed in line with recent succession law amendments, and a combined affidavit-cum-NOC will replace the earlier requirement of separate affidavit and NOC documents. Death certificates bearing QR codes are now accepted as valid alongside original or attested copies, and for deaths occurring abroad, verification can be done through overseas branches of Indian banks or foreign banks with correspondent banking relationships—reducing dependence on physical, notarised paperwork.
The framework takes effect 30 days from the circular's issue date, though entities are encouraged to apply the simplified process to pending requests even before then, without asking investors to resubmit documents already filed in the old format. To monitor compliance, processing entities must submit monthly reports to SEBI for six months, detailing the number of cases pending, received, approved, rejected, and those requiring additional documentation, broken down by QTP, simplified, and above-threshold categories.
[Circular No. HO/38/13/11(14)2026-MIRSD-POD/I/17111/2026]
