Consultation Paper Dated 12.03.2026
The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing simplification of documentation requirements for transmission of securities and revision of threshold limits for simplified claims. The proposal also introduces a straight-through processing mechanism for low-value claims and seeks to standardise documentation and procedures across intermediaries to reduce delays and hardships faced by claimants.
The existing limits for simplified documentation are proposed to be revised from Rs. 5 lakh to Rs. 10 lakh for securities held in physical mode and from Rs. 15 lakh to Rs. 30 lakh for securities held in dematerialised form. In addition, SEBI has proposed the introduction of straight-through processing for very small claims, with minimal documentation requirements, up to Rs. 10,000 for physical securities and Rs. 30,000 for demat holdings.
The proposed framework will apply to listed companies, registrars and transfer agents (RTAs), depositories, depository participants (DPs) and asset management companies (AMCs) in relation to transmission of securities.
Where securities are held with a registered nomination, the nominee shall be informed about the procedure to be followed for making a claim upon receipt of intimation of the death of the security holder. In such cases, the following documents are required to be submitted:
a) Transmission request form submitted by the nominee
b) Latest Client Master List (CML) of the demat account, not older than two months and attested by the Depository Participant
c) Verifiable death certificate
d) Officially valid ID proof of the nominee
The consultation paper also proposes standardisation of the procedure for submission and processing of transmission claims. In this regard, entities will be required to adopt standardised formats for claim forms and documentation in consultation with the Industry Standards Forum for RTAs. Such forms shall be made available to claimants both in physical mode and on the websites of the respective entities along with details of the documents required and the applicable procedure.
Entities shall acknowledge receipt of the claim once the documents are submitted and, at the time of such acknowledgement, inform the claimant of any pending, missing, incomplete or incorrect documents. Upon submission of all required documents, the entity shall issue a confirmation that the claim is complete and will be processed.
Entities may also provide an online facility for submission of claims and tracking of claim status. Transmission requests are proposed to be processed within 21 calendar days from the date of receipt of all required documents.
Public comments on the consultation paper have been invited until April 2, 2026.
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