Easing the process of converting physical securities into demat form, markets regulator Sebi today gave more flexibility on documentary requirement for the securities held in single name without a nominee.
The move is aimed at making transmission of securities more efficient and investor friendly.
For securities held in single name without a nominee, an affidavit from all the legal heirs made on non-judicial stamp paper and claim of legal ownership to the securities might be sought, Sebi said in a circular.
"In case the legal heir/claimant is named in the succession certificate or probate of will or will or letter of administration, an affidavit from such legal heir/claimant alone would be sufficient," it added.
Besides, for value of securities up to Rs 2 lakh, succession certificate or probate of will or letter of administration or court decree might be required.
In absence of these documents, a No objection certificate (NOC) from all legal heirs of the deceased holder or copy of Family Settlement Deed duly notarised would be sought.
Transmission refers to the transfer of securities from the account of a deceased holder to that of surviving joint holder, nominee or legal heir.
For valuations of securities over Rs 2 lakh, a succession certificate or probate of will or Letter of Administration or court decree is required.
Sebi had in 2013 raised the threshold value for transmission of demat securities in the case of deceased person without a nominee to Rs 5 lakh. Prior to that, the limit was Rs 1 lakh.
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