What is Transmission of Shares?
Transmission of shares is the process of transferring shares from a deceased shareholder to their legal heir(s). Unlike a regular share transfer (which is voluntary), transmission happens by operation of law — when the original shareholder passes away. This process requires specific legal documents and compliance with company procedures.
Types of Transmission
| Scenario | Process | Key Document |
|---|---|---|
| Shares held jointly | Surviving holder applies for removal of deceased's name | Death Certificate |
| Shares held singly (small value) | Simplified transmission via company RTA | Legal Heir Certificate |
| Shares held singly (large value) | Full transmission with court order | Succession Certificate / Probate |
| Shares with nomination | Faster process via nominee claim | Death Certificate + Nominee ID |
Detailed Transmission of Shares Process 2026
Transmission is often the most legally complex part of share recovery. It involves both Personal Law (inheritance) and Corporate Law (SEBI and MCA guidelines). Here is how to navigate it:
- 1. Identification of Assets: Locate all share certificates or Demat statements of the deceased. If certificates are lost, you must first follow the Lost Share Recovery process.
- 2. Death Certificate Verification: Ensure the name on the Death Certificate matches the share records. Any variation (e.g., "S.K. Sharma" vs "Suresh Kumar Sharma") will require a Name Change Affidavit.
- 3. The Legal Right Check: If the value of shares is below ₹5 Lakhs, most RTAs allow a "Simplified Transmission" with just an Indemnity Bond and Legal Heir Certificate. If the value is higher, a Succession Certificate or Probate from a Court is mandatory.
- 4. Filing with RTA: Submit Form ISR-1, ISR-2, and SH-13 (Nomination) along with the Death Certificate. If there is a nominee, the process is 70% faster as they already have the right to the shares.
- 5. NOC from Other Heirs: If there are multiple legal heirs, all other heirs must sign a "No Objection Certificate" (NOC) on a stamp paper favoring the one claiming the shares.
- 6. IEPF Consideration: If the shares were already transferred to the IEPF before the shareholder's death, the legal heir must be registered in the company's records first (Transmission) before filing the IEPF-5 Claim Form.
⚖️ What is a Succession Certificate?
A Succession Certificate is a document issued by a competent court (District Judge) certifying the legal heirs of a deceased person and their right to inherit debts and securities. It is essential when there is no Will or Nominee mentioned in the share records.
Documents Required for Transmission
| Document | Required For |
|---|---|
| Death Certificate (Original/Notarized) | All transmission cases |
| Succession Certificate / Probate | Single-holder, high-value shares |
| Legal Heir Certificate | Small-value transmission claims |
| PAN Card of Legal Heir | All cases |
| Aadhaar Card of Legal Heir | All cases |
| Original Share Certificates | Physical share transmission |
| NOC from Other Legal Heirs | When multiple heirs exist |
| Indemnity Bond (Stamp Paper) | Most cases |
| Affidavit | Declaring relationship and right to shares |
| CML (Client Master List) | For demat credit |
💡 Special Cases
If the deceased shareholder's shares have already been transferred to IEPF, the legal heir must file the IEPF-5 form with additional transmission documents. This is a more complex process that our team handles regularly.
Need Help With Share Transmission?
Transmission is legally complex, especially with court documents and multiple heirs. Our team at KMFSL specializes in these cases. Get expert help →