KEY TAKEAWAYS
- SEBI has overhauled the transmission-of-securities framework via a circular dated July 23, 2026, following approval at its 214th board meeting on June 19, 2026.
- A new Quick Transmission Processing (QTP) route lets immediate relatives, parents, spouse, children, parents-in-law, claim securities with minimal paperwork.
- QTP/simplified-documentation limits are now Rs 10 lakh (physical) and Rs 30 lakh (demat), doubled from Rs 5 lakh and Rs 15 lakh.
- Probate of a will is no longer mandatory for uncontested claims; a single affidavit-cum-NOC replaces separate documents; QR-code death certificates now accepted.
- Framework applies to listed companies, RTAs, depositories, DPs and mutual funds (including SIF units in SOA form).
- Effective from August 22, 2026 (30 days from the circular date).
SEBI Rolls Out Fast-Track Transmission Framework
Capital markets regulator SEBI has notified a revamped framework for transmission of securities held by deceased investors, introducing a new Quick Transmission Processing (QTP) route for low-value claims.
The circular, dated July 23, 2026, follows approval at SEBI’s 214th board meeting held on June 19, 2026, and applies uniformly across listed companies, registrars and transfer agents (RTAs), depositories, depository participants (DPs) and mutual funds, including Specialised Investment Fund (SIF) units held in Statement of Account form.
The regulator said the objective is to make the process more efficient, standardised and investor-friendly, cutting down the paperwork that has historically delayed the transfer of a deceased investor’s holdings to legal heirs.
The revised framework comes into force 30 days from the date of the circular, meaning the new rules become effective from August 22, 2026, giving market intermediaries a short runway to update their internal processes and claim forms.
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QTP Threshold — Old vs New
| Holding Type | Previous QTP Threshold | Revised QTP Threshold | Eligible Claimants |
|---|---|---|---|
| Physical Securities | ₹5 lakh | ₹10 lakh | Parents, spouse, children, and parents-in-law |
| Dematerialised (Demat) Securities | ₹15 lakh | ₹30 lakh | Parents, spouse, children, and parents-in-law |
Who Can Use the Quick Transmission Processing Route
Under QTP, immediate relatives of a deceased investor, including parents, spouse, children and parents-in-law, can get their claims processed with minimal documentation, provided the value of holdings falls within the prescribed limit.
As per the revised framework, claims of up to Rs 10 lakh in physical securities and up to Rs 30 lakh in dematerialised holdings now qualify for this fast-track route.
This is double the earlier thresholds of Rs 5 lakh for physical holdings and Rs 15 lakh for demat holdings, limits that SEBI had last revised more than a decade ago based on RTA and depository feedback.
Probate of Will No Longer Mandatory
One of the biggest reliefs in the new framework is the removal of the mandatory requirement to obtain probate of a will for uncontested claims, aligning SEBI’s norms with recent amendments to succession law.
Processing entities have also been directed to accept a single, consolidated affidavit-cum-no-objection-certificate in place of the separate affidavit and NOC that claimants earlier had to arrange from co-heirs.
SEBI will now also accept QR-code enabled death certificates for verification, cutting down physical attestation in many cases.
For investors who pass away overseas, a common scenario for NRI families, SEBI has widened the list of documents accepted as proof, easing verification of foreign-issued death certificates.
Transmission of Securities: New Rules vs Old Framework
The changes mark the most significant overhaul of SEBI’s transmission rules since the demat threshold was last raised in 2013 from Rs 1 lakh to Rs 5 lakh.
Earlier, claimants without a nominee often had to arrange a succession certificate, probate or letter of administration even for relatively modest holdings, a process that could stretch on for months and involve multiple intermediaries.
The existing framework also specified a 21-day timeline for processing transmission requests, but market participants had flagged inconsistent practices across RTAs and depositories in the absence of a detailed, standardised procedure. The grid below shows how the documentation and value thresholds compare.
Documentation — Old vs New
| Requirement | Earlier Framework | Revised Framework (2026) |
|---|---|---|
| Probate of Will | Mandatory in several cases | Not mandatory for uncontested claims |
| Affidavit & NOC | Separate affidavit and No Objection Certificate (NOC) required | Single affidavit-cum-NOC accepted |
| Death Certificate | Physical attestation required | QR code-enabled death certificates accepted |
| Overseas Death Cases | Limited verification options | Expanded list of accepted documents |
| Processing Timeline | 21-day norm with inconsistent implementation | Standardised timelines under the Quick Transmission Processing (QTP) framework |
Why This Matters for Investors and Their Families
SEBI’s consultation paper on the proposed transmission of securities overhaul, floated in March 2026, drew 142 public responses, with 86 per cent of respondents backing the changes, indicating strong industry support for easing the process.
To ensure the new QTP route is actually adopted, SEBI has directed AMCs and other processing entities to submit monthly reports for six months after implementation, detailing how transmission of securities claims are received, processed, rejected and left pending across the QTP, simplified and above-threshold categories.
For lakhs of retail investor families where holdings are modest, the doubled thresholds mean a large share of transmission of securities cases should now move faster and with far less paperwork than before.
NIFTYTRADER DESK VIEW
| Aspect | NiftyTrader Desk View |
|---|---|
| Investor Impact | Retail families with modest holdings are expected to benefit the most, as many first-generation investor demat accounts fall within the revised ₹30 lakh qualifying threshold. |
| Compliance Load | RTAs, depositories, and AMCs must update their systems before the August 22, 2026 implementation deadline. Sebi has also mandated monthly reporting for six months to monitor QTP adoption. |
| Broader Context | The reform complements Sebi’s broader 2026 ease-of-doing-business agenda, including the revival of the open-market buyback route and AIF-related reforms approved at the June 19 board meeting. |
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FAQs
Q1. What is Quick Transmission Processing (QTP) under SEBI’s new rules?
QTP is a fast-track route allowing immediate relatives, parents, spouse, children and parents-in-law, of a deceased investor to claim securities worth up to Rs 10 lakh (physical) or Rs 30 lakh (demat) with minimal documentation.
Q2. Is probate of a will still required to transfer securities after death?
No. SEBI has removed the mandatory probate requirement for uncontested transmission claims, in line with recent amendments to succession law.
Q3. What is the new threshold for transmission of securities in demat and physical form?
The threshold has been doubled to Rs 10 lakh for physical securities and Rs 30 lakh for dematerialised holdings, up from Rs 5 lakh and Rs 15 lakh earlier.
Q4. From when will SEBI’s new transmission framework apply?
The revised framework takes effect 30 days from the July 23, 2026 circular, that is, from August 22, 2026.
Q5. Does the new framework cover mutual fund units too?
Yes. It applies to listed companies, RTAs, depositories, depository participants and mutual funds, including SIF units held in Statement of Account form.
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DISCLAIMER
This article is for informational purposes only and should not be construed as investment advice. NiftyTrader.in is not a SEBI-registered investment adviser or research analyst under the SEBI (Investment Advisers) Regulations, 2013 or the SEBI (Research Analysts) Regulations, 2014. Readers are advised to refer to SEBI’s official circular and consult a registered financial or legal professional before acting on any regulatory update relating to transmission of securities.
