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Demat Account Transmission After Death: What the Nominee or Legal Heir Must Do

When a demat account holder dies, the shares are not sold or frozen forever — they are transmitted to the nominee or legal heirs. SEBI's revamped transmission framework (circular of July 2026, in force from August 2026) has made this significantly simpler. Here is the current process, route by route.

First, Work Out Which Route Applies to You

The documents you need depend entirely on how the account was held. Check the account statement or ask the Depository Participant (DP — the broker or bank where the account was opened) which of these applies:

Transmission is a transfer by operation of law, not a market sale. The shares are credited to the receiver's own demat account, so the nominee or heir should have (or open) a demat account in their own name before applying.

The SEBI 2026 Framework: Higher Limits, Fewer Papers

SEBI's revamped transmission framework, approved in June 2026 and issued by circular dated 23 July 2026, applies across depositories (CDSL and NSDL), DPs, and registrars for physical shares. The key changes:

RouteLimitWhat it means
Quick Transmission Processing (QTP)Up to ₹10,000 (physical) / ₹30,000 (demat)A plain-paper request-cum-undertaking is enough. Available only to close family: parents, spouse, children and parents-in-law of the deceased.
Simplified documentationUp to ₹10 lakh in physical shares per listed company / ₹30 lakh in demat holdings per beneficial ownerA reduced document set — no court process. These limits were raised from ₹5 lakh and ₹15 lakh respectively.
Full documentationAbove the simplified limitsThe DP or registrar may ask for complete legal documentation, such as a succession certificate or other legal evidence of heirship.

Route A: Nominee Claiming a Sole Holder's Account

  1. Inform the DP where the deceased held the account, and confirm the nomination registered on the account names you.
  2. Fill the transmission request form. For a CDSL account, nominee claims on a sole-holder account use the CDSL transmission form along with the nomination annexure. For an NSDL account, the transmission form is Annexure O.
  3. Attach the documents (see the checklist below): death certificate, your PAN and identity/address proof, and the client master list (CML) of your own demat account showing your name, DP ID and client ID.
  4. Submit and take a stamped acknowledgment. Keep the acknowledgment and a full copy of the set you submitted.
  5. Shares are credited to your demat account, and the deceased's account is closed.

Route B: Death of a Joint Holder

Where the account was held jointly and one holder has died, the account is not closed — the deceased holder's name is deleted and the surviving holder(s) continue operating it.

  1. For a CDSL account, use the transmission request form Annexure 7.2, which is specifically the form for transmission on the death of one or more joint holders. For NSDL, use Annexure O.
  2. Attach a certified copy of the death certificate of the deceased holder and the surviving holders' KYC documents as the DP asks.
  3. After processing, verify that the name deletion is reflected in the next account statement.

Route C: No Nominee — Legal Heirs Claim

If no nomination was registered, the legal heirs claim together. One heir can receive the shares if the others give their no-objection.

  1. Fill the transmission form (CDSL transmission form / NSDL Annexure O) and attach the death certificate.
  2. Prove heirship: a legal heir certificate or succession certificate, or a will left by the deceased, or a family settlement deed — depending on the family's situation and the value involved.
  3. Execute the supporting documents. Under NSDL's annexure series these are: Annexure OC (letter of indemnity), Annexure OD (affidavit) and Annexure OE (no-objection certificate from the non-claiming heirs). Within the simplified limits, a combined affidavit-cum-NOC can be used instead of separate documents.
  4. Stay within the simplified route if you can: for demat holdings up to ₹30 lakh per beneficial owner, the reduced document set applies and no court process is needed.
  5. Submit to the DP, take a stamped acknowledgment, and track completion against the 21-calendar-day norm.

Documents Checklist

Before the Account Is Closed