NISM-Series-VI: Depository Operations · Functions of Depository Participant - Transmission and Nomination

Transmission Procedure and Documents Required for Demat Accounts

Updated 11 October 2026 · Fact-checked

Transmission is the transfer of securities in a demat account to the surviving holders, nominee or legal heirs after a holder dies. The claimant gives the DP a transmission request form, a death certificate and KYC. Extra documents depend on whether the account is joint, has a nominee, or is single with no nominee, and on the value held.

Understand Transmission Procedure and Documents Required

Transmission means securities pass to another person by operation of law, not by sale or gift. The usual trigger is the death of a holder. The claimant does not pay for the securities. The DP only moves them to the right person's account after checking documents.

The documents asked for depend on who is claiming. Ask three questions. Is the account joint or single? Is there a nominee? Is the claimant already a client of the DP? The safer the claimant's position, the fewer documents are needed.

Joint account: when one holder dies, the surviving holder or holders claim. They give a transmission request form and a copy of the death certificate, attested by a notary or gazetted officer or verified by the DP against the original. The deceased's name is removed. If the first holder died, the next holder becomes the first holder. No court order is needed.

Single account with a nominee: on the death of the sole holder, the nominee is entitled to the securities as per the nomination. The nominee claims by giving the request form, the death certificate and the nominee's KYC. The DP transmits the securities to the nominee on these documents, without asking for a succession certificate. A nominee's claim needs no indemnity. The nominee needs a demat account to receive the securities. If the nominee has none, one is opened first.

Single account with no nominee: the legal heir must prove entitlement. Above the SEBI threshold, this means a court order or similar proof, such as probate, letter of administration or succession certificate. SEBI allows simpler papers for holdings up to the threshold. The claimant gives an indemnity bond and an affidavit, plus either no-objection letters from the non-claiming legal heirs or a family settlement deed. The threshold has been revised over time, so do not rely on a figure from old notes. Confirm the current figure in the latest SEBI circular and your workbook.

Indemnity is a written promise by the claimant to compensate the DP and the issuer if another person later proves a better claim. It is not required for a nominee's claim. It applies mainly to legal-heir claims under the simplified route. The DP also does KYC of the claimant, including PAN and in-person verification, before it credits the securities.

In a minor's account, the minor is the sole holder and the guardian only operates it. If the guardian dies, no transmission happens. A new guardian is appointed and the account details are updated, with the DP's required proof and KYC of the new guardian. If the minor dies, the nominee or legal heirs claim under the transmission procedure, with the death certificate and their own KYC.

Key formulas to remember

Joint account rule: Death of one joint holder → survivor(s) claim → request form + death certificate → deceased's name deleted; No succession certificate or court order is needed. The order of names moves up if the first holder died.
Nominee claim documents: Transmission request form + death certificate + nominee KYC + nominee's demat account; A nominee with no demat account must open one first. Nominee is the first claimant when the sole holder has nominated. The nominee is entitled to the securities on the holder's death, and the DP transmits them without a succession certificate or an indemnity.
No nominee, single holder: Legal heir claim → up to the SEBI threshold in force: simplified documents; above it: probate / letter of administration / succession certificate or similar court proof; Simplified documents mean indemnity bond and affidavit, plus either no-objection letters from non-claiming heirs or a family settlement deed. The threshold has been revised over time, so confirm the current figure in the latest SEBI circular and your workbook.
Death certificate: Notary or gazetted officer attested copy, or copy verified by DP against the original; Without this, no transmission can start.
Claimant checks: KYC + PAN + in-person verification + indemnity (legal-heir claims under the simplified route only); The DP must complete these before crediting the claimant's account. A nominee's claim does not need an indemnity.

How to solve Transmission Procedure and Documents Required questions

Use this method for any scenario question on transmission. Work through it in order and the right option usually stands out.

1Identify the account type: single, joint or minor.
2Identify the event: death of a holder, death of a guardian, or the minor reaching majority. Only the death of a holder leads to transmission. In a minor's account the minor is the holder. If the guardian dies, a new guardian is appointed and details are updated. That is not transmission. If the minor dies, the nominee or legal heirs claim by transmission.
3Check for a nominee. If the sole holder has a valid nominee, the nominee is the claimant.
4For a joint account, pick the survivor route: request form and death certificate only. Do not add court orders.
5For a single holder with no nominee, compare the value of holdings with the SEBI threshold in force. The figure has been revised over time, so use the one given in the question or your latest workbook. Up to it, simplified documents apply: indemnity bond, affidavit, and either no-objection letters from non-claiming heirs or a family settlement deed. Above it, a court order or similar proof such as probate, letter of administration or succession certificate applies.
6Add the claimant's KYC and a demat account in the claimant's name, opening one if needed.
7Check the indemnity requirement and the death certificate attestation.
8Eliminate options that demand extra documents the case does not need, or that skip the death certificate or KYC.

Quickest way: Who claims, and what do they bring

When to use it: Use this for scenario MCQs with a short stem and four document lists as options.

Underline the account type and whether a nominee exists.
Joint account: choose the option with only request form, death certificate and survivor details.
Sole holder with a nominee: choose request form, death certificate and nominee KYC.
Sole holder with no nominee: for holdings up to the threshold, look for indemnity bond and affidavit with no-objection letters or a family settlement deed. For larger holdings, look for a succession certificate, probate or similar court proof.
Reject any option without a death certificate or claimant KYC.

Common mistakes in Transmission Procedure and Documents Required

Asking for a succession certificate when a joint holder dies.
Students mix up the single-holder rule with the joint-holder rule.
Fix: Survivors in a joint account claim directly with the request form and death certificate. The succession certificate is for single-holder cases with no nominee, above the simplified threshold.
Asking a nominee for a succession certificate or court order.
Students mix up the nominee route with the no-nominee route for legal heirs.
Fix: On the death of the sole holder, the nominee is entitled to the securities. The DP transmits them on the request form, death certificate and nominee KYC, without a succession certificate.
Forgetting that the claimant needs a demat account.
Students focus on the deceased's account and not where the securities go.
Fix: Securities move to the claimant's account. If the claimant has none, the DP opens one with full KYC first.
Treating the minor reaching 18 or the guardian's death as transmission.
The account changes hands in operation, so it feels the same.
Fix: Transmission follows the death of a holder. The minor is the holder, so a guardian's death only means a new guardian is appointed and details are updated. A minor reaching majority is a change of status and needs fresh KYC and account modification. Only the minor's death leads to transmission.
Quoting an old rupee threshold from memory.
Old figures appear in old notes and sites.
Fix: Learn the structure: up to the threshold, simplified documents; above it, probate or succession-type documents. The figure has been revised before, so use the one in the question or in the latest SEBI circular and your workbook.
Skipping indemnity and claimant KYC in the answer.
These are treated as formalities.
Fix: Both protect the DP. They are standard exam points and frequent traps in the options.

Worked examples

Example 1

A demat account is held jointly by Rohan (first holder) and Meera (second holder). Rohan dies. Which is correct?

A. Meera must obtain a succession certificate before transmission.
B. Meera submits a transmission request form and the death certificate; the DP deletes Rohan's name and Meera becomes the first holder.
C. The account is closed and securities go to Rohan's legal heirs.
D. Meera must wait for a court order.

Show the solution

Account type: joint. Event: death of the first holder.
In a joint account, the surviving holder claims the securities directly.
The papers needed are the request form and a death certificate, either attested or verified against the original.
The DP removes the deceased's name. Meera moves up to first holder.
Option A and D add court or succession papers that the joint rule does not need. Option C sends securities to heirs, which ignores the survivor.

Answer: B

Example 2

Anil was the sole holder of a demat account with no nominee. His securities are worth ₹2,00,000. Assume this value is within the threshold for simplified documents in force, as given in this question. His son, a legal heir, claims them. Which set of documents fits the simplified route?

A. Only the death certificate.
B. Request form, death certificate, claimant KYC, indemnity bond, affidavit, and either no-objection letters from the other legal heirs or a family settlement deed.
C. Request form and the claimant's PAN card.
D. Probate of the will is compulsory in every case.

Show the solution

Account type: single holder, no nominee. The claimant is a legal heir.
The question states that the holding of ₹2,00,000 is within the threshold for simplified documents, so the simplified route applies.
That route needs the request form, death certificate and claimant KYC. It also needs an indemnity bond and an affidavit, with either no-objection letters from non-claiming heirs or a family settlement deed, in place of a court-issued certificate.
Option A leaves out the request form, KYC and legal-heir proof. Option C has no death certificate. Option D is wrong because probate is not needed under the simplified route.

Answer: B

Exam tips

Most questions are scenarios. Decide the account type and nominee status first, then look at the documents.
Watch for options that demand a succession certificate in a joint-holder case. These are common distractors.
Learn the structure of the simplified route. The rupee threshold has been revised over time, so use the figure in the question or in your latest workbook and SEBI circular.
Remember that the claimant's demat account and KYC are required in every route.
Do not mix up transmission (death, by law) with transfer (a voluntary move) and nomination (the holder's own choice during life). On the death of the sole holder, a valid nominee is entitled to the securities and the DP transmits them without a succession certificate.
In a minor's account, a guardian's death is not transmission. Only the minor's death is.

Practice questions from Functions of Depository Participant - Transmission and Nomination

Transmission Procedure and Documents Required: frequently asked questions

What documents are needed for transmission of shares to a legal heir?

The legal heir gives a transmission request form, a death certificate and KYC. If the sole holder had no nominee, the heir also gives proof of entitlement. Above the SEBI threshold this is a court order or similar proof, such as a succession certificate or probate. Up to the threshold, an indemnity bond and an affidavit are accepted, with either no-objection letters from non-claiming heirs or a family settlement deed.

How is transmission done in a joint demat account?

The surviving holder submits the request form and a death certificate to the DP. The DP deletes the deceased holder's name from the account. No court order or succession certificate is needed.

Does the nominee need a demat account for transmission?

Yes. The securities are credited to an account in the nominee's name. If the nominee has no demat account, one is opened with full KYC before the transfer.

What is the SEBI threshold for simplified transmission?

SEBI sets a value limit up to which simpler documentation is allowed for a legal heir when the sole holder had no nominee. The limit has been revised over time, so check the current figure in the latest SEBI circular and your NISM workbook. Above the limit, the legal heir must produce a court order or similar proof, such as probate or a succession certificate.