When a Demat account holder dies, their shares, ETFs, bonds and other securities do not automatically move to the family. The securities have to be transmitted to the surviving joint holder, nominee or legal heir through the Depository Participant (DP).
The process depends mainly on whether the account was joint, whether a nominee was registered, and whether there is a Will or other succession document.
This guide explains how securities are transmitted after death, who can claim them, what documents are required, the latest 2026 SEBI rules, and what happens when there is no nominee.
Demat account transmission is the process of moving securities held by a deceased investor to the surviving joint holder, nominee or legal heir after the required documents are verified by the DP or other processing entity.
Transmission is different from a normal transfer. A transfer happens when a living holder sells, gifts or otherwise transfers securities. Transmission happens because of the death of the holder.
The securities remain in the deceased holder’s Demat account until the transmission process is completed.
The route depends on the account structure:
Situation | Who generally applies? |
Joint Demat account | Surviving joint holder(s) |
Single holder with nominee | Registered nominee |
Single holder without nominee | Legal heir(s) or legal representative(s) |
For a joint account, the surviving holder(s) can request transmission after the death of one holder.
For a single-holder account with a nominee, the nominee can apply for transmission.
If there is no nominee, the legal heirs or legal representative(s) need to establish their claim using the documents applicable to the case.
NSDL also explains that transmission of Demat securities is handled through the DP, which makes the process different from physical securities where claims may need to be made separately to individual issuers.
If one holder of a joint Demat account dies, the surviving holder(s) can request transmission of the securities.
The nomination status generally does not change the survivorship process for a joint Demat account.
If a single holder has registered a nominee, the nominee can apply for transmission.
The nominee route generally requires less documentation than a no-nomination claim.
However, a nominee should not automatically be treated as the final legal owner in every situation. Nomination facilitates the transmission process, while the ultimate entitlement can depend on the Will and applicable succession law.
If there is no nominee, the legal heirs or legal representative(s) need to submit the documents required to establish their claim.
The documentation depends on factors such as the value of the securities, whether the claim is disputed and whether a Will or other succession document is available.
These two terms are often confused.
Point | Transfer | Transmission |
When does it happen? | While the holder is alive | After the holder’s death |
Common examples | Sale, gift, off-market transfer | Movement to joint holder, nominee or legal heir |
Reason | Voluntary decision | Death or another legal event |
Main process | Transfer instructions | Transmission request and supporting documents |
Consideration | May involve payment | No sale consideration |
For a deceased Demat holder, the correct process is transmission, not a normal transfer.
The exact process can vary slightly between DPs, but the usual steps are:
First, check whether the deceased investor had:
Also identify the DP through which the Demat account was maintained.
The person receiving the securities must have a Demat account.
If the claimant’s Demat account is with another DP, the DP may ask for the claimant’s Client Master Report (CMR/CML) to ensure the securities are credited to the correct account.
Ask the DP for the applicable transmission form.
Depending on the depository and process, forms such as the Transmission Request Form (TRF) or the applicable NSDL transmission format may be used.
The documents depend on whether the claimant is a surviving joint holder, nominee or legal heir.
The death certificate and claimant details are central to the process.
Submit the transmission form and supporting documents through the channel specified by the DP.
Keep the acknowledgement or service request number for future reference.
The DP verifies the documents and processes the request through the applicable depository system.
Once the request is approved, the securities are credited to the receiver’s Demat account.
After transmission, the receiver should also check their bank details and nomination details.
The exact document list depends on the claim.
Common documents can include:
The processing entity may ask for additional documents depending on the circumstances.
For a registered nominee, the basic process generally includes:
NSDL’s transmission guidance confirms that a nominee can request transmission by submitting the prescribed transmission form and death certificate to the DP.
When there is no nomination, additional documents may be required.
Depending on the case, these can include:
The exact requirement depends on the value of the securities and the circumstances of the claim.
This is usually the more document-heavy route.
SEBI’s current framework provides different documentation routes based on the value of the securities.
Under the 2026 framework, eligible small-value Demat claims up to ₹30,000 can use the Quick Transmission Processing (QTP) route.
QTP is available to specified immediate relatives, including:
This route is designed to reduce paperwork for very small claims.
For dematerialised securities, the current simplified-documentation threshold is ₹30 lakh per beneficial owner.
This is an important 2026 change. The earlier threshold was ₹15 lakh.
Under the simplified route, eligible claims can be processed using prescribed documents such as an indemnity and affidavit-cum-NOC or other permitted documents, depending on the case.
For claims above the simplified-documentation threshold, stronger succession-related documents may be required.
These can include:
The exact requirement depends on the facts of the case and the documents available.
If there is a dispute between heirs, the matter may require legal or judicial resolution regardless of the value of the securities.
SEBI issued a new circular on July 23, 2026, introducing a simplified and standardised framework for transmission of securities. The framework came into force on August 22, 2026.
It introduced the QTP route, increased the simplified-documentation threshold for Demat securities from ₹15 lakh to ₹30 lakh, standardised documentation and introduced a defined processing timeline.
Primary regulatory source: SEBI Circular on Simplification and Standardisation of Transmission of Securities
Under the revised 2026 framework, the processing entity is required to process an eligible transmission request within 21 calendar days after receiving all the required documents.
This does not mean every request will be completed 21 days after the first application.
If documents are missing or incorrect, the timeline may not start until the complete set of documents has been received.
If a request is delayed or rejected, the claimant should ask the processing entity for the reason in writing.
Generally, you should not try to sell securities using the deceased investor’s trading account or login credentials.
The correct process is to complete transmission first.
Once the securities are credited to the eligible receiver’s Demat account, the receiver can deal with them according to the applicable rules.
Using another person’s login after their death can create legal, KYC and account-related complications.
Once the securities are transmitted to the receiver’s Demat account, future corporate actions and benefits associated with those securities will be reflected against the new holder, subject to the applicable record dates and rules.
If dividends or other payments are pending, the claimant should also check the linked bank account and any unpaid dividend records separately.
If securities in the deceased investor’s Demat account are pledged or subject to a lien, the transmission process may require additional checks.
Do not assume that pledged securities can be treated in the same way as free holdings.
The claimant should ask the DP about the status of any pledge or lien before submitting the transmission request.
Suppose Arun was the sole holder of a Demat account containing:
Total holdings: ₹1.60 lakh
His wife can apply for transmission through the DP.
She would generally submit:
After verification, the securities can be credited to her Demat account.
The legal heirs would need to establish their claim.
Because the Demat holdings are worth ₹1.60 lakh, they fall within the current ₹30 lakh simplified-documentation threshold, subject to the applicable conditions and documentation.
If all eligible heirs agree, the claim may be processed using the applicable simplified documentation.
If there is a dispute, additional legal documentation may be required.
Transmission of Demat securities does not automatically settle these other assets.
The easiest way to reduce paperwork later is to plan while you are still alive.
You can:
You can also read our guide on Demat Account Nominee Rules 2026 for the latest nomination changes.
If you need to add a nominee, see our guide on How to Add a Nominee to a Demat Account Online.
When a Demat account holder dies, the securities are not automatically transferred to the family. They must go through transmission.
The route depends on the account:
The 2026 SEBI framework has also made the process simpler, including a ₹30,000 QTP limit for eligible Demat claims, a ₹30 lakh simplified-documentation threshold, and a 21-calendar-day processing timeline after complete documents are received.
For investors, the simplest step is to keep KYC updated and add a nominee while you are alive. This can save your family significant paperwork later.
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