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Dinaz Patel (business)     20 May 2021

Our demat holding company refuses to to transmit account

would like to explain the situation in pure facts and very briefly


--- there is a demat account in the name of of A B and C  

A is mother B is son & C is daughter in law


--- B that is the son had severe mental problems due to lot of ailments including stroke and encephalitis.

and for dematerialisation shares that were in the pattern A B C he actually opened the demat account in the name of the three A B & C after the demise of A . should not be done and that is not the correct procedure he should have declared A deceased and carried out the correct procedure. but due to mental hallucinations and other things he opened this account with A's signature after A had deceased


---the demat company at its end did not verify that A a is alive or deceased and took documents and opened the account

in the name of the three A B & C after the demise of A



--- after sometime attempt was made to to transmit all securities declaring A deceased from demat account A,B, C to demat account B C by C

at that time this was discovered & 

 managers came to meet B & C & they could see that a/c holder B was not properly oriented mentally and physically


---C was not even aware about all this & at that time when death certificate of A was provided - they were not able to close account belonging to A,B,C

since the demise date of A was long before account was opened


--- later on account holder B passed away

right now only account holder C is there


---on recommendation of manager we spent a fortune amount to get succession certificate ( High court ) with name of B 

- transfer the assets of B in the name C 


--- after giving proper sucession as they had earlier asked us to , refused to accept succession from high court & say succession should have the name of A also

or alternatively they are asking us to get some kind of court document that says that all assets of A and B should be transmitted in C given the act of omission by B



-met the manager several times with all medical reports and certificates but they refused to consider our point of view & keep insisting that what account holder B did was an act of omission


here are my questions


- succession certificate is ready and the case thereof disposed. can we we appeal to High court and get it modified instead of spending another huge amount of fortune because highcourt wants 

5 % value of assets or ₹70k ' fee ' for giving succession 

we want to modify the same succession certificate and have the name of A included is that possible 


-alternatively can we present these facts to any suitable court ( which court ? ) and get a clarification that 

although account holder B engaged in wrong procedure had he done it the right way the outcome would be the same that is the assets would not go to any other third party if any different procedure was followed 

and therefore there is no other fraudulent angle to this except that the wrong procedure was followed

we are not inclined to take the demat company to court but we just want to see if through some procedure like a writ petition we can ask clarification from the court and court will give us something in writing which we can then present to the demat company


---alternatively can we ask SEBI for clarifying & present that to demat company





 7 Replies

Prakash S Thakkar (B.S.L LL.B)     20 May 2021

U do not hv to modify the same. Instead of tht file an additional succession certificate for A. In that you file a specific avertment that you do not hv any knowledge in that aspect what B has committed  and at present i m the only survivor and hence grant me the succession certificate. In any case u can call me on 8149722555

1 Like

G.L.N. Prasad (Retired employee.)     20 May 2021

In addition to the Succession certificate, which involves time and money, you can also convert your clarifications as RTI Application and seek it as information.  You will only be spending Rs.22 on postage and Rs.10  as RTI fee.  That not only gets you authentic clarification but also helps in understanding the issue better.  You  can after getting authentic clarification from SEBI as RTI reply, can also issue a notice under CP Act to the Demat company.  

1 Like

T. Kalaiselvan, Advocate (Advocate)     20 May 2021

The B  has either intentionally or erroneously added the deceased A into the demat account by forging her signature.

Even though it can be said that B was not mentally alright at that time, this can be termed as an act of fraud or illegal act committed by B.

As a matter of fact B was not mentally alright while opening the demat account hence his application should have been rejected on  two counts, i.e., A being deceased and B being an insane person. 

Now since both are dead, the claim amount or transfer of their respective shares to C, the surviving account holder  is in question.

In fact C cannot claim innocence of A's death and B's mental unstable condition at the time of opening the demat account  hence her suit for declaration and direction to the authorities may also not be entertained or maintainable before district court or the high court.

Therefore as an alternative, C can approach SEBI with an application giving the entire details and seek their intervention  and direction to the concerned broking agency to transfer the shares of the deceased persons to C.

If this step fails to fetch the desired relief, you can take it as a last remedy exhausted by you before approaching court of law for justice 

You can discuss at length with an advocate who is having a good knowledge about the subject matter and proceed as suggested. 

1 Like

P. Venu (Advocate)     20 May 2021

Is this a real time issue? If so, how you are related to the issue or rather, who are the 'we' involved?

Dr J C Vashista (Advocate)     21 May 2021

Too long a story.

If these are the brief facts, it would be better to consult and engage  a local prudent lawyer for appreciation of facts/ documents, professional advise and necessary proceeding.

Dinaz Patel (business)     24 May 2021

thank you so much learned lawyers
much appreciate your varying and valuable perspectives  🙏 
yes in fact I am account holder  B's son
I think ok I on my own one thing I could do is write to SEBI and ask for clarification and RTI may be a good idea
we have already spent a fortune getting succession certificate with name of .A
my father had very strong personality issues . ( vaccination encephalitis more than 50 years ago ---> permanent brain swelling hydrocephalus ---> became worse with passage of time and two episodes of stroke leaving him having strong personality problems and jumbled up memory and the bank officers who came to visit us they khud if they were interested observe it. right now they still claim that my father has done something criminal but fail to understand that insanity can cause people to do the strange things ❗ ❗     )
I really appreciate your replies learned Sirs ⚖️🎩 I will keep you posted with happens

T. Kalaiselvan, Advocate (Advocate)     24 May 2021

It is surprising that how could  a mentally insane person do such things vy cleverly i.e., forging signature of a third person.

Insanity cannot force anyone to  wrong things intentionally and cannot escape the law on the basis of insanity. 

You may wait and watch the developments  and revert if you need any further legal opinion on this subject. 

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