Inheritance of Shares in a Demat Account in India
In the event that a loved one or spouse passes away and they bequeath you certain possessions in their will it is important to understand how to acquire ownership of the same. This write-up sheds light on how to acquire shares in a Demat account that have been bequeathed to you by someone who has died.
Dematerialized or Demat accounts allow their account holders to keep their shares and securities accessible in an electronic format. The value of Demat accounts lies in the fact that they allow their account holders to no longer be in possession of physical certificates indicating their ownership of a particular share. If you open a demat account, it is possible to trade shares online and with ease. Moreover, account holders can make buy, hold and / or sell decisions pertaining to the security holdings within their account from any part of the world provided they have access to a steady internet connection.
- How to Transfer Shares to a Demat Account Online -
Many times, loved ones can express their love and devotion by bequeathing their belongings to their friends and families in their wills who are understood to be beneficiaries of the same. Should you inherit the physical shares of someone who has died and would like to dematerialize the same such that you can add them to your Demat account, you are required to contact the share company’s Registrar and Transfer Agency (or RTA). They will then change the details in the company’s records to indicate new ownership of the shares by you.
Information pertaining to how to contact a company’s RTA is listed under the NSE and / or BSE websites under the section titled “Corporate Information’ / ‘Company Information’.
In the event that a shares joint holder dies, the remaining owner of the same is entitled to have the physical shares be dematerialized into their Demat account. In order to do so, they are required to submit the following –
- Notarized copy of the death certificate of the shareholder
- Transmission/ dematerialization form
- Dematerialization request form (2 copies)
- Original share certificates
- Self-attested copy of your PAN
Conclusion
Inheriting stocks and shares can provide you with some financial investments. Knowing the appropriate way to avail of them is important as is knowing how to transfer shares from one Demat to another online. Demat account opening allows you to make these transfers with ease. Prior to making any investment and trading decisions, it is important to do adequate research on the same. Due diligence pays off in the long run and allows for the potential of earning more substantial gains and incurring fewer risks and / or losses.
Related Articles: How to Buy and Sell Shares Online in India | How To Transfer Shares From One Demat Account To Other? | All You Need To Know About Dematerialization Of Shares | Benefits And Advantages of Dematerialisation of Shares | Understand what are the Tax Implications on buyback of shares?