Transmission of shares: what heirs need before they start
Transmission passes securities to a nominee or legal heir by operation of law. Knowing which evidentiary route applies saves months and, often, court costs.
Transmission is frequently confused with transfer. A transfer is a voluntary act between living parties. Transmission happens by operation of law when a holder dies, and the registrar will act only once it is satisfied about who is entitled.
Route one: a valid nomination exists
Where a nomination is registered against the folio or demat account, the process is comparatively simple: a death certificate, the nominee’s KYC, a transmission request form and, usually, a notarised affidavit. No court involvement is required.
Route two: no nomination, value below the threshold
Registrars prescribe a value threshold below which they will act on an affidavit, an indemnity bond and no-objection certificates from the other legal heirs. This avoids probate entirely and is the route most estates should aim for.
Route three: no nomination, value above the threshold
Here the registrar will insist on a succession certificate, a probated will, or letters of administration. This is a court process and adds both time and cost — which is exactly why establishing the applicable threshold before you file is worth doing.
Practical advice for large estates
- Audit the whole estate first. Obtaining one succession certificate covering every holding is far cheaper than repeating the exercise company by company.
- Collect heir NOCs early. Families cooperate more readily at the outset than eighteen months in.
- For heirs abroad, plan the attestation route — consular or apostille — before documents are drafted.
