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Transmission of Shares: A Complete Guide
Transmission of Shares is a legal process where shares are transferred from a deceased or incapacitated shareholder to their legal heir, nominee, or representative. This happens naturally by law—not through sale or payment. No stamp duty is charged in this process.
At Share Claimers, we assist families in navigating the smooth transmission of shares procedure, especially during difficult times.
What is the Transmission of Shares?
When a shareholder passes away or becomes mentally or financially incapacitated, the shares held by them are transferred to their rightful successor. This transfer is known as the Transmission of Shares.
1. No money transaction is involved.
2. It happens as per legal rights.
3. No stamp duty is required.
When Does Share Transmission Happen?
Transmission of shares usually takes place in the following situations:
- Death of the shareholder
- Mental incapacity of the shareholder
- Shareholder is declared insolvent
- Shareholder is missing or declared legally dead
Transmission of Shares Procedure:
Follow these steps based on your case:
Case 1: Nominee Exists
If the shareholder had registered a nominee:
- Submit an indemnity-cum-affidavit
- Attach a certified death certificate
- Submit the original share certificate
- Apply through the company or registrar
Shares will be transmitted to the nominee after verification.
Case 2: No Nominee, But a Will Exists
- Get the Will probated
- Shares will go to legal heirs as per the Will
- Submit relevant documents to the registrar
Case 3: No Nominee and No Will (Intestate)
If the shareholder died without a will:
- Legal heirs must complete these documents:
Affidavit declaring relationship
- Title Claim Indemnity Bond
- NOC from other heirs
- Surety form
These are submitted along with the share certificate transmission form.
Documents Required for Share Transmission
Whether it’s for Demat or physical shares, documents may vary slightly. Here’s what’s generally required:
- Death certificate (original or notarized)
- Succession Certificate / Will / Letter of Administration
- Legal heir’s ID proof (PAN/Aadhaar)
- Transmission Request Form (provided by company)
- Original share certificates (if physical shares)
For step-by-step help, visit our Signature Mismatch Resolution Guide to ensure all your documents are accurate before initiating share transmission.
Transmission in Case of Registered Nominee
When a nominee is already registered, share transmission becomes simpler:
1. Only basic documents need to be submitted.
2. Shares are transferred quickly.
3. No need for a succession certificate.
This process is often preferred for share transfer transmission services.
Brief Overview
Transmission of Shares is the legal shift of ownership that occurs upon a shareholder’s death, mental instability, or insolvency. Unlike transfer, this doesn’t require a sale deed or stamp duty. The successor—either a nominee or legal heir—must follow a simple process to get the shares in their name. If a nominee is registered, the process is straightforward. Otherwise, documents like death certificates, ID proof, and legal papers are required. Transmission of physical shares on death is more document-heavy compared to Demat shares. It’s essential to update records quickly to avoid delays. Share Claimers offers reliable share transmission services for every case.
Frequently Asked Questions
It is the legal transfer of ownership of shares due to death, insolvency, or inheritance—without any sale or payment.
During the registration of the transmission of shares or Unclaimed Dividends, the legal heirs become the company’s shareholder and is entitled to all the rights as well as subjected to all the liabilities as shareholder.
It helps preserve legal ownership rights and allows families to access inherited wealth without disputes.
- Legal and smooth process
- No stamp duty
Easy update of ownership in company records
Firms like Share Claimers provide trusted and end-to-end share transmission services to assist families during such times.