When a shareholder passes away, their investments in shares, dividends, and mutual fund units do not automatically transfer to family members. These assets remain frozen until the nominee or legal heirs complete the transmission of securities. Many families are unaware of this process, resulting in valuable investments lying unclaimed for years.
Claim The Unclaimed specializes in helping investors and legal heirs recover unclaimed, lost, and forgotten shares, dividends, and IEPF-transferred securities across India.
In May 2022, the Securities and Exchange Board of India (SEBI) issued a landmark circular that significantly simplified the transmission process and standardized documentation requirements.
What is Transmission of Shares?
Transmission refers to the legal transfer of shares from a deceased shareholder to the nominee or legal heirs.
Unlike a regular transfer of shares:
- No stamp duty is payable
- Ownership passes by operation of law
- The claimant must submit prescribed documents to the company or its Registrar and Transfer Agent (RTA)
SEBI Circular Dated 18 May 2022 – Major Relief for Investors
SEBI Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/65, dated 18 May 2022, simplified and standardized the procedure for transmission of securities.
Key Changes Introduced by SEBI
| Change | Benefit to Investors |
|---|---|
| Higher threshold for simplified documentation | Reduced paperwork for smaller holdings |
| Acceptance of Legal Heirship Certificate | Easier proof of entitlement |
| Clarification on use of Will | Avoids unnecessary legal disputes |
| Standardized forms | Uniform process across all RTAs |
| Operational guidelines | Faster and more predictable processing |
Annexure A: Ready Reckoner for Documents Required
1. Where Nomination Exists
If the deceased shareholder had registered a nominee, the process is straightforward.
Required Documents
- Duly signed Transmission Request Form (ISR-5 or prescribed format)
- Death Certificate
- PAN Card of Nominee
- Address Proof
- Client Master List (for demat account)
2. No Nomination – Securities Up to ₹5 Lakh
For holdings with a market value up to ₹5 lakh (as applicable under the 2022 framework), documentation is simplified.
Required Documents
- Transmission Request Form
- Death Certificate
- PAN of claimant(s)
- Legal Heirship Certificate or equivalent government certificate
- Affidavit
- Indemnity Bond
- No Objection Certificates (if multiple heirs)
3. No Nomination – Securities Above ₹5 Lakh
For higher-value holdings, additional legal documents may be required.
Acceptable Supporting Documents
- Succession Certificate
- Probate of Will
- Letter of Administration
- Court Decree
- Registered Will
- Legal Heirship Certificate (where accepted)
Annexure B: Operational Guidelines for Transmission
The company or RTA typically follows these steps:
- Verify submitted documents.
- Request additional information if needed.
- Approve the claim.
- Issue a Letter of Confirmation.
- Credit shares to the claimant’s demat account.
Annexure C: Standardized Forms Introduced by SEBI
SEBI prescribed uniform formats to simplify transmission.
| Form | Purpose |
|---|---|
| ISR-5 | Transmission Request Form |
| Affidavit | Declaration by legal heirs |
| Indemnity Bond | Protection for the company/RTA |
| NOC | Consent from other legal heirs |
| Letter of Confirmation | Final approval for demat credit |
Why Shares Become Unclaimed
Shares may remain unclaimed due to:
- Death of the shareholder
- Family members unaware of investments
- Lost share certificates
- Unupdated KYC or address records
- Non-encashment of dividends
- Transfer of shares to IEPF
Recovery of IEPF Shares and Dividends
If dividends remain unclaimed for seven consecutive years, shares are transferred to the Investor Education and Protection Fund Authority (IEPFA). Recovering them requires:
- Filing Form IEPF-5
- Submitting indemnities and verification documents
- Coordinating with the company and IEPFA
Claim The Unclaimed assists investors through the entire IEPF recovery process.
How Claim The Unclaimed Helps
Claim The Unclaimed provides expert support for:
- Identification of forgotten investments
- Transmission of shares after death
- Recovery of IEPF shares and dividends
- Duplicate share certificates
- Name correction and KYC updates
- Demat and rematerialization support
Who Should Seek Professional Help?
You may benefit from expert assistance if:
- The shareholder died without a nominee
- Multiple legal heirs are involved
- Original documents are missing
- Shares were transferred to IEPF
- RTAs are requesting additional documents
- The claim involves old physical certificates
Conclusion
SEBI’s 18 May 2022 circular made the transmission process significantly more investor-friendly by standardizing forms, recognizing Legal Heirship Certificates, and simplifying documentation requirements. Families can now claim inherited shares more efficiently and with greater clarity.
If you need assistance recovering inherited, lost, or IEPF-transferred shares, Claim The Unclaimed offers end-to-end professional support to help you reclaim your rightful investments with confidence.