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Sheila   27 May 2016

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.



 13 Replies

G.L.N. Prasad (Retired employee.)     28 May 2016

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.

Sheila   28 May 2016

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.

Kumar Doab (FIN)     28 May 2016

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.

 

 

Sheila   28 May 2016

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.

Kumar Doab (FIN)     28 May 2016

What is the value of shares?

 

Sheila   28 May 2016

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).

Kumar Doab (FIN)     01 June 2016

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: 99 times

Kumar Doab (FIN)     01 November 2016

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.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     11 November 2016

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, 

cs santosh jagtap (PRACTICING COMPANY SECRETARY)     13 February 2017

i agree with Rama chary Rachakonda sir ,

succession Certificate is must for transmission of share certificate

Abhishek   24 April 2017

I have successfully got my fathers physical share certificates transferred from father to mother she is not a nominee in any co just like your case 

after my fathers demise i got same advise to get succession certificate , it depends on companies they will provide an alternate option eg: NOC letter /affidavits

from other siblings , please send email to registrar of those companies for the process & respond accordingly some co's ask some dont depending on current

threshold limits .

Kumar Doab (FIN)     24 April 2017

Inquire and transact with each company as suggested by Abhishek and try resolve with your skills as suggested in inputs from Mr. Abhishek.

WARRIOR 4 RIGHT (Consultant)     14 August 2018

I am of the view that you can get right type of guidance on your share problems from 'M/s 5 Star Consultants'. They solve different types of problems relating to the company shares. If desired, they can be contacted for solution to your problem through email at: whatsolution4me@gmail.com

Also, if holding physical shares. They are likely to become zero in the first week of December, 2018. M/s 'M/s 5 Star Consultants' can prove to be the best guide to solve problem in physical shares.

 


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