TRANSMISSION OF SHARES
What is Transmission of Shares?
The process of transferring ownership of shares from a deceased shareholder to their lawful heirs or
beneficiaries following the shareholder's death is referred to as the transmission of shares. This
transfer often occurs when a shareholder passes away and the shares they held need to be transferred to
their heirs.
What are the Legal documents needed for Transmission of shares?
The legal documents needed for transmission of shares are:
- Legal Heir Certificate (obtained from local SDM / Tehsil Office)
- Succession Certificate (obtained from Court)
- Probate of Will (obtained from Court)
- Letter of Administration (obtained from Court)
However, there are different criteria for obtaining legal documents, listed in the table
below:
|
Physical Shares
|
|
Value
|
Legal Documents
|
|
Below Rs5 Lakhs
|
Legal Heir Certificate
|
|
Above Rs5 Lakhs
|
Succession Certificate/Probate of Will/Letter of Administration
|
|
DEMAT
|
|
Value
|
Legal Documents
|
|
Below Rs15 Lakhs
|
Legal Heir Certificate
|
|
Above Rs15 Lakhs
|
Succession Certificate/Probate of Will/Letter of Administration
|
Is the Probate of Will and Succession Certificate the same thing?
No. They are not the same. When a deceased person leaves a Will, Probate is granted.When a deceased
person does not leave a Will, a Succession Certificate is issued. Only the assets stated in the Will are
transferred to the beneficiaries in the event of Probate. In a succession certificate, the legal heir
can claim all of the deceased's assets. A beneficiary in Probate might be an individual or any entity,
however a beneficiary in Succession can only be a Legal Heir, according to the Indian Succession Act,
1925.
How to get Legal Heir Certificate?
Legal Heir Certificate is issued by the Revenue dept of the district where the shareholder was deceased.
In case of metropolitan cities, it is issued by the SDM office and in case of non-metropolitan cities,
Legal Heir Certificate is issued by the Tehsil office. In some regions, it is also known as Surviving
Member Certificate.
How to get Succession certificate?
To obtain a Succession Certificate, you have to file a petition before the appropriate Civil Court where
the deceased person last resided. It is required only when the deceased person has not left a will
behind. The applicant has to prepare a petition, verify and sign the same and submit it to the district
judge in the appropriate jurisdiction after paying the appropriate court fees. The Court summons the
concerned parties for verification of the claim. Once the genuineness of the claim is confirmed, the
court grants the Succession Certificate.