Demat accounts when opened usually have a nomination requirement. Transmission of shares where nomination exists makes them easier to be transferred. However, there may be situations where there may be no nominee. Let’s first look at transfer procedure if nominee exists. For those who may not be familiar with security accounts and terms used in India.
The nominee shall require the Depository Participant (DP) in writing to submit the securities covered by the nomination to the account of the Candidate.
A certified copy of the death certificate should be included in the transfer application.
As soon as the shares are transferred to the NRI account (Non-PINS Non-Repatriable) account of the legal heirs, they can change these shares:
In the secondary market without PINS/RBI approval.
NRI does not need RBI permission to hold and transfer shares acquired through inheritance through the transfer of shares.
As per provisions of Section 6(5) of FEMA 1999, a person who is a citizen outside India can keep, own, transfer or invest in the Indian currency, security or immovable property which is resident in India, if Such currency, security or property was acquired, held or owned by such person when he resided in India or was inherited by a person resident in India.
Transfer inherited shares if no nomination in the Demat account If the nominee is not mentioned in the demat account or if there is death of the account owner, the legal heirs or the legal representatives may apply to the Depository Participant (DP) to transfer inherited shares lying in the account of the deceased to the account of the legal heirs or legal representatives. The following documents are essential:
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