Legal Heir Share Recovery: Claiming a Deceased Holder's Shares

Why a deceased holder's shares get stuck

Shares do not pass to the family automatically. Until someone applies for transmission, the RTA or depository keeps them in the deceased holder's name. Dividends then go unpaid, and if dividends stay unpaid for seven consecutive years, the company transfers the shares to IEPF (Companies Act, sections 124 and 125).

Families often discover the holdings late, when sorting papers or when a dividend letter arrives. By then, the case may involve paper certificates, missing nominations, several heirs in different cities, or shares already sitting with IEPF.

Nominee, joint holder or legal heir: who claims the shares?

A nominee receives the shares from the company's side, but the family's inheritance rights still apply. Where there is no nominee, heirs need to show who is entitled and that the other heirs agree.

Legal heir share recovery under SEBI's July 2026 rules

SEBI's transmission circular of 23 July 2026, effective from around 22 August 2026, made the process easier for most families. It sets value-based limits:

• Quick Transmission Processing: for holdings up to ₹10,000 in physical form or ₹30,000 in demat form.
• Simplified documentation: for holdings up to ₹10 lakh in physical form or ₹30 lakh in demat form, using an affidavit-cum-NOC from the heirs and an indemnity. Probate is not mandatory on this route.
• Death certificates: QR-code death certificates are accepted, and overseas death certificates can be certified through banks.
• Timeline: the RTA or company is expected to process the request within 21 days of receiving complete documents.

Above these limits, the company or RTA may ask for stronger proof of heirship, such as a succession certificate or probate. Our succession certificate and legal heir support page explains how families obtain these.

Multiple heirs and NOCs

When several heirs exist, the shares are usually transmitted to one heir with the written no-objection of the others, or split as the family agrees. Delays commonly arise when one heir lives abroad, a heir has also passed away, or family members disagree. Settling who will receive the shares before applying saves repeated rejections.

Physical certificates of a deceased holder

Paper certificates add a step. Transfers of physical shares have been barred since 1 April 2019, so after transmission the heir must convert the shares to demat form before selling. The heir needs a demat account in their own name, matching the name on the transmission documents.

If the certificates are missing, the RTA handles a duplicate request. SEBI's December 2025 circular simplified this for holdings up to ₹10 lakh, and duplicates are now issued in demat form. See duplicate share certificate recovery and physical shares to demat for those steps.

IEPF claim by legal heir

If the deceased holder's shares have already moved to IEPF, the heir can still claim them. There is no time limit, and no filing fee for Form IEPF-5. The heir first obtains an entitlement letter from the company or RTA, which reflects the transmission, and then files IEPF-5 online. The company e-verifies the claim, the IEPF Authority decides it, and the shares are credited to the heir's demat account.

The new Form IEPF-5, effective 6 October 2025, allows multiple folios in one claim. More on this route is on our IEPF claim services page.

Do you need help with this?

Yes. Transmission requests to an RTA and IEPF-5 claims on iepf.gov.in are free official routes. SEBI's standard ISR forms are available from the company or RTA. For a single folio, a registered nominee or a small holding under the quick route, many families complete the process on their own.

Help becomes useful when there are several companies, lost certificates, name differences between the certificate and the death certificate, heirs in different countries, or shares spread across the RTA, suspense accounts and IEPF.

How Expertvuw helps legal heirs

1. Case review: we list every holding we can identify from the papers you share and check where each one sits today.
2. Tracing and documents: we trace the RTAs and organise the heirship documents that match the value limits and route for each holding.
3. Filing and follow-up: the heir remains the applicant; we prepare the requests for signature and follow up with RTAs, companies and the IEPF Authority.
4. Credit: shares are credited only to the heir's own demat account, and dividends to the heir's own bank account.

Where a court petition is needed, it is filed through qualified advocates; we coordinate the documentation.

Why Expertvuw

• A registered private limited company with offices in Delhi and Gurugram.
• Families across India and abroad, supported by phone, email and video calls.
• Plain-language updates, and careful handling of sensitive family documents.
• Not affiliated with or authorised by IEPFA, SEBI or any court.

Related services

• Claiming all investments of a deceased parent (bank, insurance, mutual funds and more)
• Share transmission services
• Claims where no nominee was registered
• Share recovery for NRI heirs

Frequently asked questions

How can I transfer shares of my deceased father to my name?

Apply for transmission. For demat shares, approach the depository participant; for physical shares, write to the company's RTA using SEBI's ISR forms. You will need the death certificate, your KYC and, if there is no nominee, heirship proof and NOCs from other heirs. Smaller holdings follow SEBI's simplified July 2026 route.

Is a succession certificate required for transmission of shares?

Not always. Under SEBI's July 2026 circular, holdings up to ₹10 lakh (physical) or ₹30 lakh (demat) can be transmitted with an affidavit-cum-NOC and indemnity, and probate is not mandatory on this route. Above these limits, the company or RTA may ask for a succession certificate or probate.

What if the shares of a deceased holder are already in IEPF?

The legal heir can still claim them. First obtain an entitlement letter from the company or RTA reflecting the transmission, then file Form IEPF-5 online. There is no time limit and no filing fee for IEPF-5. Shares are credited to the heir's own demat account after the IEPF Authority approves the claim.

Can a nominee keep shares without the consent of other legal heirs?

The company transmits the shares to the registered nominee, which gives the company a valid discharge. However, the family's inheritance rights under succession law still apply, so other heirs may have a claim on the value. Families should settle this among themselves or take legal advice where there is disagreement.

How long does transmission of shares take?

Under SEBI's July 2026 circular, the RTA or company is expected to process a transmission request within 21 days of receiving complete documents. Total time depends on how quickly heirship papers, NOCs and KYC are ready, and whether the shares are physical, in demat, or already with IEPF.

What if the name on the share certificate differs from the death certificate?

The RTA will usually ask for proof that both names refer to the same person before processing transmission. This is one of the most common causes of rejection, so check all documents before filing. Our name mismatch correction page explains how such differences are generally resolved.

Does the legal heir need a demat account?

Yes, in practice. Transmitted shares are credited in demat form, and physical shares cannot be transferred or sold without dematerialisation since 1 April 2019. The heir should open a demat account in their own name, with details matching the transmission documents, before or during the process.