SEBI specifies the revised transmission framework for securities

The Securities and Exchange Board of India (“SEBI”) has specified the revised transmission framework for securities. Its provisions will come into force with effect from 23^rd August 2026.

Key Features of the Revised Framework:

1. Introduction of Quick Transmission Processing (“QTP”) for low value claims and revision of thresholds for simplified documentation:
   • For securities in physical mode, the claims threshold under QTP is ₹10 thousand and the claims threshold under simplified documentation is ₹10 lakhs.
   • For securities in dematerialized mode, the claims threshold under QTP is ₹30 thousand and the claims threshold under simplified documentation is ₹30 lakhs.
2. Documentation requirements for transmission.
   • Cases where nomination has been made: In case where nomination has been made, carry out the following:
     • Where the securities are held with a nomination, the nominees(s) shall receive the assets of deceased sole holder/joint holders as trustee on behalf of legal heir(s) of deceased holder(s).
     • The nominee(s) shall be informed about the procedure to be followed for the claim on receipt of intimation of death of the security holder(s). In such cases, the following documents shall be required to be submitted – Transmission request form by the nominee(s), Latest client master list (“CML”) of the demat account of the nominee(s), Verifiable death certificate and Original security certificate(s)/copy of statement of account (“SOA”), as may be applicable.
     • Upon demise of one of the nominees prior to the demise of the investor and if no change is made in the nomination, then the assets attributable to the deceased nominee shall be distributed to the surviving nominees on pro rata basis.
     • The regulated entity shall be fully discharged from its liabilities upon transmission of assets to the nominee(s).
   • Cases where there is no nomination: In cases where there is no nomination, the transmission of securities of the deceased holder(s) shall be made in favor of claimant(s)/legal heir(s). In such cases, the following documents shall be required to be submitted:
     • Transmission request form by the claimant(s)
     • Latest CML of the demat account of the claimant(s)
     • Verifiable death certificate
     • Original security certificate/copy of SOA, as may be applicable
3. Requirements QTP for low value cases – The claimant(s) shall submit the transmission request form-cum-undertaking on a plain paper along with a document establishing relationship between the claimant(s) and the deceased security holder(s).
4. Requirements under simplified documentation category:
   • Notarized indemnity bond indemnifying the processing entity
   • Notarized affidavit-cum-NOC from all legal heirs confirming identification and claim of legal ownership to the securities and no objection OR Copy of family settlement deed executed by all legal heirs, duly attested by a Notary Public, Gazetted Officer, or accepted and approved by a Magistrate, Judge or Civil Court.
5. Requirements for claims above simplified documentation threshold –
   • Notarized affidavit-cum-NOC from all legal heirs confirming identification and claim of legal ownership to the securities and no objection and
   • Copy of Will as may be applicable in terms of Indian Succession Act,1925, along with a notarized indemnity bond from the legal heir(s)/claimant(s) to whom the securities have to be transmitted, as per the format specified or Legal  Heirship  Certificate or its equivalent issued by relevant authority which will mean a revenue authority not below the rank of a Tehsildar or equivalent authority, along with a notarized indemnity bond from the legal heir(s)/claimant(s) to whom the securities have to be transmitted or Copy of Succession certificate or Letter of Administration or Court Decree.
6. Standard Procedure for Submission of Claims – The entity shall necessarily use standardized forms in the following formats for receiving the claims and other documents for the following: Transmission Request form-cum-Undertaking on plain paper for claims under QTP category, Transmission Request Form for claims other than QTP category, Notarized indemnity bond indemnifying the processing entity, Notarized affidavit-cum-NOC from legal heirs, as applicable, confirming identification and claim of legal ownership to the securities and no objection.

Processing entities shall provide monthly reports as per the prescribed format to SEBI regarding processing of transmission requests under revised transmission framework for a period of 6 months on rta@sebi.gov.in

Source: SEBI