When an investor dies, their family faces two things simultaneously: grief and paperwork. Shares, mutual fund units, bonds. Each held at a different institution. Each with its own process, its own document requirements, and its own timeline. Families have spent months, sometimes years, and significant legal fees assembling documentation to claim holdings worth less than the cost of the process.
SEBI’s circular (Circular No.: HO/38/13/11(14)2026-MIRSD-POD/I/17111/2026) of July 23, 2026 takes direct aim at this problem. The revised framework for transmission of securities, effective August 22, 2026, introduces a new fast-track route, significantly raises the thresholds for reduced paperwork, removes the mandatory requirement of obtaining a court-certified probate of will, and standardises the process across every type of institution that holds financial assets.
Here is everything investors and their families need to know about the new securities transmission rules in India.
What Is Securities Transmission and Why Did It Need Reform?
Transmission is the process by which financial assets held by a deceased investor are transferred to their nominee or legal heir. It covers shares in demat form, physical share certificates, mutual fund units, bonds, and other securities.
Until the July 2026 circular, the process was criticised for three consistent problems. Documentation that was disproportionate to the value of the claim: a family spending Rs. 15,000 in legal fees to recover a Rs. 20,000 holding is not a system that works for investors. Inconsistency across institutions: the same set of documents might be accepted by one RTA and rejected by another. And no accountability for delays: processing entities could take months with no obligation to communicate the reason.
SEBI’s 214th board meeting on June 19, 2026, approved the reforms, which were formalised through the circular issued on July 23, 2026.
The 3 Securities Transmission Routes Under the New Framework
The revised framework creates three distinct routes based on the value of the claim and who is claiming. Understanding which route applies to a specific situation is the first step for any family navigating transmission.
| Route | Value Threshold | Who Can Use It | Key Features |
| Quick Transmission Processing (QTP) – New | Physical: up to Rs 10,000 Demat: up to Rs 30,000 | Immediate relatives (spouse, children, parents, parents-in-law) whether or not a nomination exists. Without a nomination, only immediate relatives qualify. | Minimal paperwork. Death certificate + basic KYC of claimant. Fastest route for small-value holdings. |
| Simplified Documentation Route | Physical: up to Rs 10 lakh per listed company Demat: up to Rs 30 lakh per beneficial owner (Doubled from Rs 5L and Rs 15L) | Nominee or legal heir (with or without a will) | Single affidavit-cum-NOC instead of separate documents. No probate required. No PAN submission needed (already linked to demat). QR-code death certificates accepted. |
| Standard Route (Full Documentation) | Above Rs 10 lakh (physical) or Rs 30 lakh (demat) | Legal heirs with or without a will, disputed claims | Succession certificate or probate where claimed; probate is now only mandatory where the claim is actually disputed, not for all high-value uncontested claims. |
What Changed: A Complete Before and After
The circular makes nine concrete changes to the existing transmission framework. Here is each one, side by side.
| Aspect | Before (Old Framework) | After (August 22, 2026) |
| Probate of will | Mandatory for many transmission cases | Mandatory only for genuinely disputed claims. Not required for uncontested cases. |
| Documents required | Separate affidavit + separate NOC from all co-heirs | Single combined affidavit-cum-NOC. One document, not two. |
| PAN submission | Required as part of transmission paperwork | No longer required. PAN already linked to demat account. |
| Death certificate format | Physical original or attested copy only | QR-code enabled digital death certificates now accepted. |
| Overseas death (NRI) | Limited authentication methods | Accepted via overseas branches of Indian banks and foreign bank correspondents, in addition to notarisation, apostille, and consularisation. |
| Fast-track for tiny claims | Not available | New QTP route for Rs 10,000 (physical) and Rs 30,000 (demat) with minimal paperwork. |
| Simplified route threshold | Rs 5 lakh (physical), Rs 15 lakh (demat) | Doubled to Rs 10 lakh (physical), Rs 30 lakh (demat). |
| Who processes | Inconsistent across entities | Harmonised and standardised across listed companies, RTAs, depositories, DPs, AMCs, and mutual funds. |
| Delays and rejections | No mandatory communication requirement | Must be communicated in writing. SEBI may take action if delays are attributable to the processing entity. |
The New Quick Transmission Processing (QTP) Route Explained
The most significant addition in the circular is the Quick Transmission Processing (QTP) category, designed specifically for small-value holdings that were previously abandoned because the paperwork cost exceeded the recovery value.
What QTP covers
Physical securities worth up to Rs 10,000 per listed company, and demat holdings worth up to Rs 30,000 per beneficial owner account.
Who can use QTP
Immediate relatives of the deceased: spouse, children, parents, and parents-in-law. Where no nomination exists, QTP is restricted to these immediate relatives only.
What documents QTP requires
A death certificate (including QR-code-enabled digital certificates) and basic KYC of the claimant. No separate affidavit, no NOC, no probate, no PAN submission.
Why it matters
Before QTP existed, families with small holdings had to go through the same documentation process as those claiming crores worth of assets. Many simply did not bother, contributing to the growing unclaimed assets problem in Indian financial markets. QTP makes the process proportionate to the stakes.
Who Benefits Most from QTP
- Elderly investors with small FD-linked demat accounts: a pensioner who held a few thousand rupees in a demat account can now be claimed by their spouse or children with minimal paperwork.
- First-generation investors with modest portfolios: families where the deceased held small initial SIP positions across multiple folios can now recover them without a legal ordeal.
- NRI families with small Indian holdings: relatives in India claiming modest demat holdings left by an overseas investor now have a much faster path.
NRI Investors: What the Circular Does for Overseas Deaths
One of the most practically difficult transmission scenarios has been where an investor died overseas. The family in India needed to authenticate a foreign death certificate, which previously required specific official processes that were time-consuming and expensive.
The July 2026 circular widens the accepted authentication methods. In addition to the existing routes (notarisation by a notary public in the country of issuance, apostille, or consularisation by an Indian embassy or consulate), death certificates can now also be authenticated through:
- Overseas branches of Indian scheduled commercial banks operating in the country where the death occurred.
- Branches of foreign banks that maintain correspondent banking relationships with Indian banks.
This is a practical change for the millions of Indian families with members who lived and worked abroad and held Indian financial assets.
What Investors Should Do Right Now
The circular simplifies transmission for families. But the single action that makes transmission easiest of all is one investors must take while they are alive: add a nomination to every financial account they hold. Here is a complete action plan.
| Action | Why It Matters | When |
| Add nominees to all financial accounts | Every bank account, demat account, mutual fund folio, EPF, PPF, NPS, insurance policy, and provident fund. If a nomination exists, the QTP and simplified routes are available to the nominee immediately. Without a nomination, the family faces the full standard route regardless of value. | Do today |
| Update nominees after life events | Marriage, divorce, a child’s birth, or the death of an existing nominee all require a nominee update. Old nominations do not update automatically. | Annually or after any life event |
| Keep a master financial inventory | A simple document listing every financial product you hold, the institution, account number, and nominated beneficiary. Store it with your will and tell your spouse or adult child where to find it. | Create now, update annually |
| Make a will, even a simple one | A registered will removes all ambiguity about your intentions and helps heirs use the simplified route confidently. For uncontested claims, probate is no longer required, but a clear will still prevents disputes. | Create now if you do not have one |
| Verify demat account KYC is current | Nominees and legal heirs will need up-to-date KYC to claim. If the deceased investor’s KYC was outdated, it can slow the process. Keep your own KYC updated annually. | Verify annually |
| Consolidate fragmented holdings | Multiple small folios or demat accounts across institutions multiply the transmission effort. Consolidate where possible to reduce the number of claims your family will need to file. | Review and consolidate now. |
Final Words: The Best Estate Plan Is a Nomination Done Today
SEBI’s July 2026 circular is a genuine improvement. Faster processing for small claims, fewer documents for larger ones, no mandatory probate for uncontested cases, standardised procedures across institutions, and accountability for delays. Families will spend less time and less money claiming what they are entitled to.
But the circular cannot do the work that only the investor can do: update nominations on every account, maintain a financial inventory, and leave a clear record for the people who will need it.
The most valuable estate planning action you can take today: open the app or website for your demat account, mutual fund folio, bank account, and EPF portal. Check whether a nomination is registered. If not, add one now. An AMFI-registered distributor like VSJ FinMart can help you audit your mutual fund folios and verify that nominees are correctly registered across all your goal-based SIPs.
Read the original SEBI circular at SEBI India.
Frequently Asked Questions
Q: What is the Quick Transmission Processing (QTP) route introduced by SEBI?
QTP is a new fast-track transmission category introduced in SEBI’s July 23, 2026 circular for low-value holdings. It applies to physical securities worth up to Rs 10,000 and demat holdings worth up to Rs 30,000 per beneficial owner. Immediate relatives, spouse, children, parents, and parents-in-law can claim under QTP with minimal documentation: essentially a death certificate and basic KYC of the claimant.
Q: Is probate of will still required to transmit securities in India?
After the July 2026 circular, probate is no longer mandatory for uncontested transmission claims. It continues to apply only where a claim is genuinely disputed. This removes one of the most expensive and time-consuming requirements that families previously faced. For the simplified documentation route and QTP, the combined affidavit-cum-NOC is sufficient for uncontested cases regardless of claim value.
Q: What are the new limits for the simplified documentation route?
The simplified documentation thresholds have been doubled. For physical securities: up to Rs 10 lakh per listed company (previously Rs 5 lakh). For dematerialised securities: up to Rs 30 lakh per beneficial owner account (previously Rs 15 lakh). Listed companies may further raise the physical securities threshold at their own discretion. These limits apply to both nominee and legal heir claims.
Q: What documents does a nominee or legal heir need to submit for transmission?
It depends on the route. For QTP (very small claims): death certificate and basic claimant KYC. For the simplified documentation route: a single affidavit-cum-NOC (replacing separate affidavit and NOC), death certificate, and claimant KYC. PAN no longer needs to be submitted separately as it is already linked to demat accounts. Probate is not required for uncontested claims under any route.
Q: Does the new SEBI transmission framework apply to mutual fund units?
Yes. The revised framework applies to mutual fund units, including Specialised Investment Fund units held in Statement of Account form, in addition to listed company shares, demat holdings, RTAs, depositories, and depository participants. The same simplified routes (QTP and reduced documentation) and the same document relaxations apply to mutual fund transmission claims under the new framework.
Disclaimer
The information provided in this blog is for educational and informational purposes only and should not be construed as investment advice. Please consult a qualified financial advisor before making any investment decisions. Shashikant Chanderkumar Mudaliar (ARN: 319377), operating under the brand name VSJ FinMart, is an AMFI-registered Mutual Fund Distributor (MFD) and does not provide investment advisory services. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Please read all scheme-related documents carefully before investing. Registration details can be verified at www.amfiindia.com/locate-distributor.