Even as you save and invest for the future, prepare for the worst-case scenario. An integral step in this regard is listing a nominee who will inherit your assets, including dematerialised securities held in a demat account. The process of transferring the assets of a deceased person to their nominees or legal heirs is called transmission. Whether you currently have a demat account or plan to open demat account, knowing how transmission works could help.
The transfer of assets held in demat form—whether stocks, bonds, debentures, mutual fund units, or other financial instruments—depends on certain key details:
- Whether the demat account is held jointly or singly
- Whether or not there is a nominee
- Value of the securities held
To begin the transmission process, claimants must submit their claim with the relevant depository participant (DP).
- Jointly held demat account with surviving holders
Suppose a demat account is held … Read More