SEBI removes mandatory probate and sets 21-day limit for transmission of securities
RTAs, listed companies, depositories and AMCs must adopt SEBI's standard transmission forms and settle claims within 21 calendar days from 22 August 2026
Change
SEBI issued a circular on 23 July 2026 replacing the framework for transmission of securities on the death of a holder, under Regulation 40(7) of the LODR Regulations as amended by the gazette notification of 10 July 2026; the revised framework takes effect 30 days from issuance and removes the mandatory Probate of Will requirement, introduces a Quick Transmission Processing category for low-value claims, and imposes a 21 calendar day settlement limit on processing entities.
Why it matters
Claims now fall into three tiers. Quick Transmission Processing covers claims up to ₹10 thousand for physical securities and ₹30 thousand for dematerialised holdings, is open only to parents, spouse, children and parents-in-law, and requires a plain-paper form plus proof of relationship. Simplified documentation runs to ₹10 lakhs physical and ₹30 lakhs dematerialised, requiring a notarised indemnity bond and a combined affidavit-cum-NOC or family settlement deed. Above those thresholds, a Will, Legal Heirship Certificate or court-issued succession document is needed. Probate of Will is no longer mandatory, and a death certificate bearing a QR code is now an accepted verifiable document. Foreign-issued death certificates can be verified through overseas branches of Indian banks or correspondent foreign banks, in addition to consularisation and apostille. Processing entities must use SEBI's standardised forms, settle within 21 calendar days of receiving complete documents, give written reasons for any delay or rejection, and file monthly returns to SEBI for six months across all three claim categories.
Implications
- — RTAs, listed companies, depositories, DPs and AMCs must replace their existing transmission forms with SEBI's prescribed Annexure-2 to Annexure-5 formats and publish them on their websites before 22 August 2026, since the circular requires entities to necessarily use the standardised forms and in-house variants will no longer satisfy the framework.
- — Processing entities must implement a 21 calendar day settlement clock running from receipt of complete documents, with written reasons for any delay or rejection, because SEBI may take action under the relevant act, regulations or circulars where the delay is attributable to the entity.
- — Processing entities must stand up monthly reporting to [email protected] covering the six months from 22 August 2026, split across Quick Transmission Processing, Simplified and Above-threshold categories and recording opening and closing pendency, cases received, approved and rejected, and cases where additional documents were sought with reasons.
- — Claims teams must stop requiring Probate of Will as a default and retrain on the revised evidence set, since probate is no longer mandatory, a QR-coded death certificate is now acceptable, and a combined affidavit-cum-NOC replaces the separate affidavit and NOC.
- — Entities that exercise discretion to seek documents beyond the prescribed set for above-threshold cases must record reasons in writing and apply that requirement consistently across similar client cases, so ad hoc document requests that differ case to case will not stand.
Who is affected
- — Registrars to an Issue and Share Transfer Agents processing transmission claims
- — Listed companies, depositories and depository participants effecting transmission of securities
- — Asset management companies transmitting mutual fund and specialised investment fund units
- — Investor services and claims teams handling deceased-holder claims
What to watch
- — Effective: 22 August 2026 — the revised transmission framework and model forms come into force 30 days from the date of issuance of the circular.
- — Monthly reporting period ends: 22 February 2027 — processing entities must file monthly reports to SEBI on transmission requests under the revised framework for six months from the effective date.