These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.
I recently found several bonds and share certificates in physical form belonging to my late father. How can I get them dematerialised and transferred to the legal heirs?
Vikash Jain Co-founder, Share Samadhan: To claim physical shares or bonds of a deceased holder, legal heirs must complete the transmission process by submitting the death certificate, PAN, KYC documents, and proof of legal heirship (such as a will, probate, succession certificate, or indemnity) to the company or its Registrar & Transfer Agent (RTA). If there are multiple legal heirs, no-objection certificates (NOCs) from other heirs may also be required, depending on the value of the holding and the company’s procedures.
If the securities have remained unclaimed, they may have been transferred to the Investor Education and Protection Fund Authority (IEPFA), in which case heirs must first complete the separate IEPF claim process to recover them. The claimants may also need to furnish bank details, specimen signatures, and other supporting documents for verification.
Post transmission, the securities can be dematerialised by opening a Demat account and submitting a Dematerialisation Request Form (DRF) along with the original certificates.
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What is the procedure to transfer shares that were purchased by me but were mistakenly held jointly with my brother? This was done before my marriage. I am the first holder and have fully funded the investment, but my brother is not cooperating in transferring the shares solely to my name. How can this issue be resolved?
Rajat Dutta Founder & Initiator, Inheritance Needs Services: Name of the shareholder on the share certificate (if held in physical form) establishes the ownership of shares. Being the first holder, you jointly own the shares with your brother (the second joint holder). Dividends are credited to the bank account of the first holder, as the Income Tax Act recognises the first holder for tax purposes.
Any change in ownership, transmission, sale, or transfer of the shares requires the signatures and consent of both joint holders. The issue can only be resolved amicably by seeking the cooperation of the joint holder, dematerialising the shares into a joint demat account, and then transferring them through an off-market transaction into your sole demat account.
Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com
