No PAN, No probate: How SEBI has simplified share transmission for families

The Securities and Exchange Board of India (SEBI) has approved sweeping changes to the framework for transmission of securities, making it easier and faster for legal heirs to claim shares and other investments of deceased investors.

The reforms, cleared at SEBI's June 19 board meeting, are aimed at reducing paperwork, cutting costs and easing procedural hurdles faced by families during an already difficult period.

What is transmission of securities?

Transmission refers to the process by which shares, mutual funds or other securities held by a deceased investor are transferred to legal heirs or nominees.

The process often involves extensive documentation and delays, especially when there are disputes or multiple claimants.

SEBI's latest measures seek to simplify this process.

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Quick processing for small claims

One of the biggest changes is the introduction of Quick Transmission Processing (QTP) for smaller claims.

Under the new framework, claims up to ₹10,000 for physical holdings and ₹30,000 for demat holdings can now be processed with minimal documentation, allowing families to access small investments more quickly.

Higher limits for simplified documentation

SEBI has doubled the thresholds for simplified documentation.

The limit for physical holdings has been increased from ₹5 lakh to ₹10 lakh per listed company, while the limit for demat holdings has been raised from ₹15 lakh to ₹30 lakh per beneficial owner.

This means more investors and their families will be able to complete the process without undergoing complex legal procedures.

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PAN no longer required

In another major relief, SEBI has removed the requirement to submit a Permanent Account Number (PAN) during transmission.

The regulator noted that PAN details are already available when demat accounts are opened, making additional submission unnecessary.

Probate of will no longer mandatory

Perhaps the most significant change is the removal of the mandatory requirement for probate of wills.

The decision aligns with recent amendments to succession laws and could save families considerable time and legal expenses.

Probate proceedings can often take months and involve court processes, which many legal heirs find cumbersome.

Simpler paperwork

SEBI has also introduced several documentation-related changes.

Separate affidavits and No Objection Certificates (NOCs) have been replaced with a combined affidavit-cum-NOC. In addition to original or attested copies of death certificates, copies containing QR codes will now be accepted, making verification easier.

For death certificates issued abroad, additional verification mechanisms involving overseas branches of Indian banks and foreign banks with correspondent banking relationships have also been permitted.

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Why it matters

According to SEBI, the changes are expected to facilitate faster transmission of securities while reducing costs and procedural hardship for claimants.

For millions of investors and their families, the reforms could mean a smoother and less stressful experience when transferring financial assets after the death of a loved one.

The move is also part of the regulator's broader push to simplify market processes and strengthen investor protection.

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