SEBI Simplifies Transmission Rules for Legal Heirs

PR no. 33/2026; dated: 19.06.2026

EBI, in its 214th Board Meeting, approved significant reforms aimed at simplifying and standardising the transmission process for securities held by deceased investors. The measures are intended to ease procedural requirements for legal heirs and claimants while ensuring faster and more efficient transmission of investor assets.

1. Simplified Framework for Transmission of Securities

The approved reforms seek to streamline the transmission process across the securities market by introducing a more uniform and investor-friendly framework for legal heirs and claimants of deceased investors.

The changes are expected to reduce procedural complexities and facilitate quicker settlement of claims.

2. New Route for Small-Value Claims

A key feature of the reforms is the introduction of a simplified mechanism for processing small-value transmission claims.

The revised framework will apply to:

2.1. Physical Securities Holdings

• Claims up to ₹10,000

2.2. Dematerialised Securities Holdings

• Claims up to ₹30,000

The new route is intended to facilitate faster processing and reduce the documentation burden for claimants in low-value cases.

3. Objective of the Reforms

The approved measures aim to:

• Simplify the transmission process for legal heirs;
• Standardise procedures across intermediaries;
• Reduce delays in settlement of claims;
• Minimise compliance burdens in small-value cases; and
• Enhance investor protection and ease of access to inherited securities.

4. Amendment to Mutual Fund Regulations Approved

In addition to the transmission-related reforms, the SEBI Board also approved amendments to the SEBI (Mutual Funds) Regulations to facilitate:

4.1. Intraday Borrowings by Mutual Funds

The proposed amendment will permit mutual funds to engage in intraday borrowing, providing greater operational flexibility in managing temporary liquidity mismatches during the trading day.

5. Expected Impact

The transmission reforms are expected to significantly improve the experience of legal heirs and nominees seeking the transfer of securities after the death of an investor. The introduction of a dedicated route for small-value claims is likely to expedite claim settlement and reduce procedural hurdles.

Further, the approval of intraday borrowing provisions for mutual funds is expected to strengthen liquidity management practices and improve operational efficiency within the mutual fund industry.

6. Key Takeaway

SEBI has approved a simplified and standardised framework for transmission of securities held by deceased investors, including a dedicated mechanism for small-value claims up to ₹10,000 (physical holdings) and ₹30,000 (demat holdings). The Board has also approved amendments to Mutual Fund Regulations to enable intraday borrowings, thereby enhancing operational flexibility for mutual funds.

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