Markets regulator Sebi on Thursday revised the security transmission framework by introducing a new fast-track mechanism for low-value claims and standardising documentation requirements to make the process efficient and investor-friendly. According to reports from PTI, CNBC TV18, and The Economic Times, the framework introduces Quick Transmission Processing (QTP) and revises the monetary thresholds under the simplified documentation route. The revised framework aims to streamline the transmission process and provide faster resolution for smaller-value claims, with AMCs required to complete transmission requests within 21 calendar days for all categories. The framework comes into force 30 days from the issuance date of July 23, 2026, with processing entities directed to strive to process transmission requests received before this date under the new simplified framework as well.
Under the new norms, QTP will apply to claims involving securities worth up to ₹10,000 held in physical mode and ₹30,000 for demat holdings. As reported by PTI, CNBC TV18, and The Economic Times, Sebi has also revised the threshold for transmission through simplified documentation to ₹10 lakh for physical securities and ₹30 lakh for demat holdings. The regulator has standardised documentation and procedures for transmission by removing the mandatory requirement of probate of a will in line with recent amendments to succession laws. Listed entities may enhance the ₹10 lakh threshold for physical securities at their discretion under the simplified documentation framework. For mutual fund units, claims up to ₹30 lakh will qualify for QTP route, with immediate family members able to avail this route for demat or SOA form holdings. QTP is permitted only in favour of immediate relatives of the deceased — parents, spouse, children and parents-in-law.
According to the circular issued by Sebi, the regulator has replaced separate affidavits and no-objection certificates (NOCs) with a combined affidavit-cum-NOC and allowed QR code-enabled death certificates as valid documents for verification. For death certificates issued in foreign jurisdictions, the regulator has permitted additional modes of verification, including certification by overseas branches of Indian banks and foreign banks having correspondent banking relationships with Indian banks. As reported by PTI, CNBC TV18, and The Economic Times, entities will have to process transmission requests within 21 calendar days from receipt of all required documents. For mutual fund units, AMCs and RTAs will be required to acknowledge receipt of documents, inform claimants of any deficiencies upfront and process complete transmission requests within 21 calendar days. Any of an original death certificate, copy attested by the nominee subject to verification with the original, copy attested by a notary, Gazetted Officer, or Judicial Magistrate First Class, or a death certificate bearing a QR code can serve as valid proof of death.
The revised framework will come into force 30 days from the date of issuance of the circular dated July 23, 2026, with processing entities directed to strive to process pending requests under the new framework to extend the benefit of simplified procedures to investors. According to PTI, CNBC TV18, and The Economic Times, the circular also mandates listed companies, registrars and transfer agents (RTAs), depositories, depository participants and asset management companies to use standardised forms for transmission requests and may provide an online facility for submission and tracking of claims. For six months after implementation, AMCs and other processing entities will have to submit monthly reports to SEBI detailing the number of transmission requests received, processed, rejected and pending under the QTP, simplified and above-threshold categories. Entities cannot demand re-submission of documents already submitted for claims filed before the effective date. SEBI has also directed processing entities to update transmission SOPs and websites to reflect the QTP category and revised thresholds before the effective date (approximately August 22, 2026).
For mutual fund investors, transmission of units after the death of a unitholder has often involved lengthy paperwork and multiple document submissions. The new framework is expected to reduce delays, standardize practices across AMCs and make it easier for nominees and legal heirs to claim investments. Where an investor has not registered a nominee, the QTP route will be available only to immediate relatives, including parents, spouse, children and parents-in-law. They will need to submit a transmission request-cum-undertaking along with proof establishing their relationship with the deceased investor. For larger claims, SEBI has prescribed separate documentation under the simplified and above-threshold categories, while allowing succession certificates, letters of administration or other court-issued documents to replace several supporting documents. SEBI has also encouraged AMCs to provide online submission and tracking facilities for transmission requests, making the process more transparent for investors and their families. The framework applies to transmission of listed securities and units issued by AMCs upon the demise of the sole holder or all joint holders and binds all listed companies, RTAs, depositories, DPs and AMCs uniformly.
