How are shares transferred to the nominee's account in case of the death of the account holder?

• In the event of the death of the account holder, the process of transmission of shares is done in favor of the nominee after the nominee submits the required documents. The shares are transferred from the deceased account holder's demat account at Jainam to the nominee's demat account (with any broker), closing the deceased's account. If the nominee don't have a demat account, a separate demat account in his/her name needs to be opened with any DP.
• The nominee must submit the following documents for a death claim:
  1. Account closure Form (PDF)
  2. Transmission request form (PDF) and to see sample filled forms (PDF)
  3. PAN of the successor/legal heir/applicant/deponent/claimant (Self-attested copy).
  4. Death certificate of the deceased holder (original/notarized/attested by a gazetted officer).
  5. CMR hard copy of the successor/legal heir/applicant/deponent/claimant. (if DP is other than Jainam, then with the DP seal and signature.)
• Courier the documents to
  Jainam House
  New Passport Office Road,
  Kargil Chowk, Piplod,
  Surat-395007.
• To know more about documents required in such a case, see, What is the procedure for transmission of shares after the death of the account holder if there is a nominee appointed by the deceased? 

RELATED FACTS:

• The transmission process will be completed within 7 days after receiving all relevant documents.

• Nomination added after the death of the account holder is not valid.

• If the nominee is a minor, then they should also provide a copy of the birth certificate of the minor and a guardian certificate to consider the guardian's signature on the form.

• As per CDSL, transmission of securities in the cases where a nominee is appointed by the deceased will always be done in favor of the nominee. However, if the name of a person other than the nominee is mentioned in the will of the deceased and that person provides a court stay on the transmission process, then the transmission process will be stopped by the Jainam and will be done as per the court’s verdict.

• A photocopy of the death certificate can be considered if it is available on the government website. Clients can share the government link where the death certificate can be viewed or downloaded by creating a ticket.

• A self-attested Statement of holding should be provided by the nominee/claimant if required.

• Lock-in shares will only be moved to the successor or the nominee’s CDSL demat accounts in the lock-in period only.

• Procedure of Transferring the funds: - As the deceased client have some funds in his trading account, procedures related to the transfer of those funds will be completed prior to the closure of his demat account. If the deceased has:
  1. Credit Balance: -
     • If the client has a nominee in the trading a/c:- then the funds will be transferred to the successor or nominee’s bank account mentioned in the CMR. A personalised cancelled cheque or a bank statement/passbook not older than 3 months should be given by the successor(s)/Legal heirs(s) if the deceased has a credit balance.
     • If there is no nominee appointed in the trading account: If there are no securities in the demat account as of the date of the death of the client, but there is a credit balance in his trading account, then, in such cases, documents related to the family tree can be requested by Jainam's team to ascertain the true successor of the client.
       
       
  2. Debit balance: 
     If the deceased trading account has a debit balance, then such a debit (negative) balance needs to be paid to Jainam by the claimant before the transmission process. The successor/nominee/claimant  must provide a DD (Demand Draft) in the name of Jainam Broking ltd.