Did you know, if an account holder passes away and there’s no nominee to his/her Demat account then claiming the ownership of the securities held therein becomes extremely difficult even for the legal heirs.
The good news is that all Depository Participants (DPs) provide a nomination facility but the bad news is that people seldom opt for it.
At Ventura Securities, we always encourage investors to appoint at least one nominee to avoid complications in the case of eventualities.
Nominees act as trustees of the legal heirs of a deceased person. Therefore, if you appoint your legal heirs as nominees of your investments, it might ensure a smooth transfer of your wealth, once you are no more.
If a sole account holder dies without registering a nominee, the transmission process becomes cumbersome. In this case, the survivors of a deceased person have to approach a competent court to obtain a legal heir certificate or succession certificate.
Besides these documents, the survivors have to submit a copy of the death certificate, duly notarized by a Notary Public, a letter of indemnity, an affidavit and a No Objection Certificate (NOC) from all legal heir(s) to the Depository Participant (DP) of the deceased.
In case the legal heirs are different from the nominee registered in demat account, the transmission happens based on the application submitted by the claimant, along with the legal heir certificate. This is supplemented by the nominee’s NOC and a copy of the death certificate, duly notarized by a Notary Public.
In case the legal heir is the same as the nominee registered in the demat account, the transmission process becomes easier. The nominee has to submit a transmission form, a notarized death certificate of the deceased person and the client master of the nominee’s demat account provided by his/her Depository Participant.
A nominee holder or a surviving holder (in case of a joint-account) should have an individual demat account or can open a new demat account with any depository participant to effect a transmission of securities from the deceased holder’s account.
Demat holder(s) can register up to 3 nominees in a demat account and define what percentage (%) he or she intends for each nominee.
At any point of time, if demat holders wish to change their nominee, all they have to do is submit a dully filled in nomination form to the Depository Participant, with their fresh nomination specified on it.
Clear roadmap for transfer of securities held in the demat, if the account holder passes away
Hassle free transfer of securities
Easier transmission of securities
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Disclaimer:
We, Ventura Securities Ltd, (SEBI Registration Number INH000001634) its Analysts & Associates with regard to blog article hereby solemnly declare & disclose that: We do not have any financial interest of any nature in the company. We do not individually or collectively hold 1% or more of the securities of the company. We do not have any other material conflict of interest in the company. We do not act as a market maker in securities of the company. We do not have any directorships or other material relationships with the company. We do not have any personal interests in the securities of the company. We do not have any past significant relationships with the company such as Investment Banking or other advisory assignments or intermediary relationships. We are not responsible for the risk associated with the investment/disinvestment decision made on the basis of this blog article.
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