Executive Summary
The Securities and Exchange Board of India (SEBI) issued a circular standardizing the transmission of securities framework. The update introduces a Quick Transmission Processing (QTP) route for small-value claims, raises monetary thresholds for simplified documentation, and permits QR-code verifiable death certificates to streamline succession processing.
Regulatory Background
Transmission of securities following the death of a holder often suffered from fragmented procedures across Registrars and Share Transfer Agents (RTAs), Depositories, and Asset Management Companies (AMCs). Legal heirs faced disparate documentation requirements, mandatory probate demands for modest holdings, and extended processing times.
What Has Changed?
SEBI has established standardized documentation formats across market intermediaries, created a fast-track QTP route for small claims, increased threshold limits for non-probate simplified processing, and streamlined operational turnaround times.
Key Changes Comparison
|
Particular |
Earlier Position |
New Position |
|
Small Claim Threshold (per issuer / AMC) |
Up to ?10,000. |
Raised to ?30,000 under Quick Transmission Processing (QTP) per beneficial owner. |
|
Simplified Processing Limit |
Up to ?10 lakh per issuer/DP. |
Raised to ?30 lakh for the simplified affidavit-cum-NOC route per beneficial owner. |
|
Verification Format |
Physical attested/notarized copies mandatory. |
Accepts digital QR-code verifiable death certificates. |
|
Turnaround Target |
Variable RTA timelines. |
Prescribed 21-calendar-day service turnaround standard. |
Who Will Be Affected?
- Listed Companies and Registrars and Share Transfer Agents (RTAs)
- Depositories (NSDL, CDSL) and Depository Participants (DPs)
- Asset Management Companies (AMCs) and Mutual Funds
- Individual Investors, Nominees, and Legal Heirs
Effective Date & Applicability
- Date of Issue: 23 July 2026
- Effective Date: 30 days from issuance (22 August 2026 operational readiness target)
- Applicability: All transmission requests processed by listed issuers, RTAs, AMCs, and DPs.
Compliance Impact
- SOP Update: RTAs and DPs must reconfigure demat and physical value verification checks to reflect the ?30,000 QTP and ?30 lakh simplified thresholds.
- Form Standardisation: Transition to combined affidavit-cum-no-objection documentation and accept QR-verifiable documents.
- Turnaround Tracking: Configure IT workflows to track adherence to the 21-calendar-day target.
KGS Practical Takeaway: Market intermediaries should complete service desk training before 22 August 2026. RTAs should ensure documentation burdens are not imposed on claims eligible for the simplified or QTP routes.
Source / Reference
- Authority: Securities and Exchange Board of India (SEBI)
- Document: Circular
- Reference No.: Circular dated 23 July 2026
- Date: 23 July 2026
- Official Source: SEBI Official Portal — Circulars Section
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