How to Transfer Inherited

Shares | Shares transfer to

Non-Resident

Inherited Stocks in India - How can

I receive these shares?

Demat accounts when opened usually have a nomination requirement. Transmission of shares where nomination exists makes them easier to be transferred. However, there may be situations where there may be no nominee. Let’s first look at transfer procedure if nominee exists. For those who may not be familiar with security accounts and terms used in India, a brief description of the abbreviations used in this article are mentioned below to help readers understand this article. Demat account is like a bank account where securities are held Depository Participant (DP) refers to the institution such as the bank where the demat account is held Portfolio Investment (NRI) Scheme (PINS) is a scheme by the Reserve Bank of India PINS account can be opened in designated branches of banks Only an NRI/PIO can open a PINS account. NRI/PIO can have PINS account with only one bank at a time Secondary Market refers to a market where securities are traded [Stock Exchange] Primary Market is where securities are offered to public for subscription for the purpose of raising capital

Transfer of Shares to Nominee

Nominee if they do not already have a demat account should open a new demat account, In case the nominee is an NRI, the nominee/heirs can open a Non-PINS- Non-Repatriable demat account. This account is required as securities are transfered to these accounts.

Procedure to Transfer Inherited

Shares - NRI

The nominee requests the Depository Participant (DP) in writing to transmit the securities covered by the nomination to the account of the Nominee. A certified true copy of the death certificate should be included with the transfer request. Once the shares are transmitted to the NRI account (Non-PINS-Non-Repatriable) of the legal heir, they can liquidate these shares: o In the secondary market without PINS/ RBI permission. PINS approval is not required for selling inherited shares. o To conduct other transactions in the secondary market, PINS approval will be required. NRI does not require RBI permission to hold and transfer of shares, acquired by inheritance through transmission of shares. As per provisions of Section 6(5) of FEMA 1999, a person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.

Transfer of Shares if no nomination

in demat account

In case there is no nominee mentioned in the demat account and in case of death of the account holder, the legal heir's or the legal representatives can apply to the Depository Participant (DP) to transmit the shares lying in the account of the deceased to the account of the legal heir’s or legal representatives. The following documents are generally required: A copy of the death certificate duly notarized. A copy of the Succession certificate duly notarized or an order of a court of competent jurisdiction where the deceased has not left a Will OR A copy of the Probate or Letter of Administration duly notarized. The legal heir may find it easier if they first open an account with the DP where shares are held.