Demat: How does share transfer work in case account holder passes away? MintGenie explains
demat account holdings. Navigating the legal and procedural aspects of handling a demat account after the demise of its holder can be a challenging and sensitive task. In the wake of such events, understanding the necessary steps and procedures becomes crucial to ensuring the seamless transfer of securities and compliance with legal formalities.
The Securities and Exchange Board of India (SEBI), the regulatory authority overseeing Indian capital markets, has been urging all demat and mutual fund account holders to add nominee details. This initiative aims to assist investors in safeguarding their assets and facilitating the smooth transfer of holdings to their rightful heirs. Also Read: How to update personal details in my demat account? Notably, in October of the previous year, SEBI eased the process for transferring securities from the account of a deceased individual.
In this article, we will delve into the process of transferring shares from a deceased person and explore how to manage them thereafter. A dematerialised (demat) account acts as a digital vault for the financial securities purchased by an investor, storing them in electronic format. This account simplifies the storage and management of financial securities, providing convenience and accessibility to investors.
Having a demat account is essential for anyone wishing to trade in the Indian stock market. These accounts are offered by depository agencies, primarily CDSL and NSDL, both of which are registered with the market regulator. Also Read: Demat accounts: From holding to pledging of shares, here are the features available On the other hand, transmission refers to the transfer of securities from the account of a deceased holder to a joint holder,
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