TRANSMISSION OF SHARES
What is Transmission of Shares?
The transmission of shares refers to the transfer of ownership of shares from a deceased shareholder to their designated Legal heir or beneficiaries following the shareholder’s demise. This transfer occurs upon the shareholder’s death, facilitating the passing of shares to their rightful successors.
Documents Required for Transmission of Shares.
* Legal Heir Certificate ( Obtained from SDM / Tehsil Office )
* Succession Certificate ( Obtained from Court )
* Probate of Will or Letter of Administration.
However, there are different criteria for obtaining legal documents, listed in the table below:
Physical Shares | |
|---|---|
Value | What Legal Documents are required ? |
Below ₹5 Lakhs | Legal Heir Certificate |
Above ₹5 Lakhs | Succession Certificate/Probate of Will/Letter of Administration |
DEMAT Account | |
|---|---|
Value | What Legal Documents are required? |
Below ₹15 Lakhs | Legal Heir Certificate |
Above ₹15 Lakhs | Succession Certificate/Probate of Will/Letter of Administration |
Is the Probate of Will and Succession Certificate the same thing?
There are distinct legal procedures related to inheritance. In situations where a deceased individual has left a will, the process involves Probate. Conversely, in the absence of a will, a Succession Certificate is issued. Assets specified in the will are distributed directly to beneficiaries through Probate, whereas all assets can be claimed by a legal heir with a Succession Certificate. In Probate, beneficiaries can be individuals or entities, while in Succession, beneficiaries must meet the criteria of Legal Heirs as outlined in the Indian Succession Act of 1925.
How to get Legal Heir Certificate?
The Legal Heir Certificate is typically issued by the Revenue Department in the district where the deceased shareholder resided. In locales, this certificate is dispensed by the SDM office, while in rural areas, it is granted by the Tehsil office. In certain areas, this documentation may be referred to as the Surviving Member Certificate.
How to get the Succession certificate?
To obtain a Succession Certificate, it is necessary to file a petition with the relevant Civil Court located in the deceased individual’s last known place of residence. This legal instrument holds particular importance in cases where the deceased has not left a will. The petitioner is tasked with preparing, validating, and submitting the petition for approval, which is then reviewed by the district judge within the appropriate jurisdiction along with the necessary court fees. Subsequently, the Court notifies all relevant parties to confirm the validity of the claim. Upon establishing the legitimacy of the claim, the Court proceeds to issue the Succession Certificate.