Share transfer after owner's death with no nomination/will


My mother had bought shares in various companies from the secondary market with my money. The shares were registered in her name, with my name not mentioned as the nominee. These are physical shares and not in demat form.

 

Now that she has passed away without a will, my brother and I are the sole legal heirs left. My brother has no objection to relinquishing any claim to these shares.

 

I read about this kind of situation a little bit and it seems a succession certificate might be required, but the process of obtaining this from the courts seems quite lengthy. My question is, preferably with least trouble and cost as well as maximum speed, how can I get all those shares transferred to my name in demat form? I would also like to include both my sons as nominees at the same time. Please advise.

 
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Retired employee.

It is true that Companies used to insist Succession Certificate from Competent Court but the very purpose of Nomination is to avoid such lengthy procedure, and if a nomination is registered you are legally entitled to submit a claim form, death certificate in original duly attested and after hearing you may send original certificate.  First make an attempt without assumptions and then come back if you experience any difficulty.

 
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Originally posted by : G.L.N. Prasad
if a nomination is registered you are legally entitled to submit a claim form, death certificate in original duly attested and after hearing you may send original certificate

 

But Mr. Prasad I have already stated that no nomination is registered.

 
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FIN

Fully agreed with Mr. G.L.N Prasad.

The nomination is the answer to such problems.

It is pertinent to mention here that unlike other instruments 'NOMINAtION IN EQUITY SHARES' vests ownership to nominee.

Hence had your name been nominated you would have become owner without need to any NOC/Relinquishment from your brother.

 

Ask the procedure from company. Complete the process and transfer the share in your name.

In the end company may insist upon Succession Certificate.

 

 

 
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Originally posted by : Kumar Doab
Hence had your name been nominated you would have become owner without need to any NOC/Relinquishment from your brother.

 

I fully understand that, Mr. Doab. Unfortunately it was not done and hence all the trouble I have to face now, which is why I came here for preliminary advice in the first place. No point discussing what should have been done in the past, is there? This experience is also why I want to properly nominate both my sons once the shares are in my name. Are multiple nominees allowed?

 

Originally posted by : Kumar Doab
Ask the procedure from company. Complete the process and transfer the share in your name.

In the end company may insist upon Succession Certificate.

 

You're right, perhaps I might not have any choice at all. I suppose then my next query would be how to expeditiously apply for and acquire a succession certificate. Thank you for your help so far.

 
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FIN

What is the value of shares?

 

 
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Originally posted by : Kumar Doab
What is the value of shares?

 

Less than Rs. 1 lakh in one case, and more than a lakh in other cases (but not more than 5 lakhs per company).

 
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FIN

Our hunch is that you know the process and details.

SEBI has set the threshold value.

 

You may go thru:

 

Securities and Exchange Board of India CIRCULAR CIR/MIRSD/10/2013 October 28, 2013 

https://www1.nseindia.com/content/equities/SEBI_Circ_28102013.pdf

 

and act accordingly.



Attached File : 60926 20160601173511 729907971 sebi circ 28102013.pdf downloaded 71 times
 
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FIN

Formal application, Heir ship certificate, indemnity bond from acceptable surety, renunciation letter from other legal heirs, affidavit, identity proofs of all executes, assets liability statements of sureties, original share certificates etc may solve your issue.

 
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Lawyer in Hyderabad.Email:ramachary64@gmail.com

Succession Certificate is a certificate granted by the Courts in India to the legal heirs of a person dying intestate leaving debts and securities.So it is a must for tranfer of title on securities, 

 
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