sudheer (no designation) 23 November 2011

Transmission of dmat account

What is the way out if there is no WILL or SUCCESSION Certificate for Transmission of a Dmat account.

My father expired in Aug 2009 had no nominee in the DMAT account. My mother is legal heir of all his property or assests as per hindu succession law. She submitted following documents on the request from the BAnk. However, after 2 years, last month October 2011 the branch had come up with request to provide Succession Certificate.

a. Letter of Surety from an independent Surety who is not the spouse / family member of the applicant and who is acceptable to the DP.

b. Letter of Indemnity executed by the applicant and Surety on non-judicial stamp paper of appropriate value.

c. An Affidavit from the applicant executed on non-judicial stamp paper of appropriate value and notarized.

d. ‘No objection letter(s)’ from all legal heir(s) who are not applicants conveying no objection to the transmission of the relevant securities in favour of the applicant(s).

My Question is why is succession required when as per Law she is legal Heir and we son and daughter have written 'No Objection Letters' in favour of my mother. All my father's Mutual Fund investment & Savings account were transmitted to my mother based on the above mentioned documents (except surety), even same Bank has transferred FD's & Savings account without nominee to my mother then why cannot DMAT account. However, in DMAT transmission Senior Manager of the bank himself is giving the surety in this case.

Now my mother has also expired in Oct 2011, I'm nominee for her DMAT account.

How do we get access to the securities of my father as well as my mother. Please suggest what is the way out considering the fact we are already struggling for the transmission from 2 years.

Is there any other way then Succession Certificate> If no, how combersome or time consuming is this process.

Reply Follow

2 Replies

V. VASUDEVAN (LEGAL COUNSEL) 26 November 2011

The Sucession for shares requires succession certificate, beyond certain limit of the value of the shares (market value). However, the waiver process viz. indemnity process is accetable by most of the Depository Participants and the guidelines are given by the Depositories - NSDL or CDSL. Once the bank provides the indemnity procedure, they should not go back and demand succession certificate. Write to the NSDL or CDSL where the shares in demat are held and also the SEBI investor grievances cell. NSDL/SEBI also has local centres where you can meet the concerned officers to get the matter sorted out.

vasudevan

Manish Singh (Advocate) 07 December 2011

The same falls under th descretion of banks and rules made by themselevs. So try to satisfy them as far as possible in order to get your work done. Communicate with senior officials and in case you find it unreasonable, approcah the banking ombudsman.