The board of capital market regulator Sebi has approved measures to streamline the securities transmission process following investors' demise by introducing faster settlement mechanisms for small-value claims and significantly easing documentation requirements for legal heirs and claimants, reducing procedural hurdles.
A key feature of the new framework is the introduction of Quick Transmission Processing (QTP) for small-value claims. Under the simplified route, claims of up to ₹10,000 for physical holdings and ₹30,000 for dematerialised holdings can be processed with minimal documentation, enabling faster transfer of securities to beneficiaries.
In cases where nomination is not registered, a simplified documentation is available up to a threshold limit of claims. Sebi has now proposed doubling this. For physical holdings, the limit has been raised from ₹5 lakh to ₹10 lakh per listed company, while for dematerialised holdings it has been increased from ₹15 lakh to ₹30 lakh per beneficial owner.
The requirement to submit a Permanent Account Number (PAN) has been removed, as PAN details are already available at the time of opening demat accounts. The mandatory requirement of obtaining probate of a will has also been dispensed with, in line with recent changes in succession laws.
Further, claimants will now be allowed to submit a combined affidavit-cum-No Objection Certificate (NOC) instead of furnishing separate documents. To simplify verification, Sebi has expanded the list of acceptable documents to include death certificates carrying QR codes, in addition to original or attested copies.
For cases involving death certificates issued overseas, the regulator has prescribed additional verification channels through overseas branches of Indian banks or foreign banks that maintain correspondent banking relationships with Indian lenders.
Sebi said the measures are expected to make the transmission of securities significantly easier and faster, reducing compliance costs and procedural hardship for legal heirs while ensuring a more efficient claims-processing framework."By increasing the limits, 80 per cent of the cases will be covered," Sebi chairman Tuhin Kanta Pandey said on Friday.
Other measures
The regulator reintroduced the open-market share buyback route through stock exchanges from August 1, 2026, following changes in the tax treatment of buybacks. Companies undertaking buybacks through this route will have to complete them within 66 working days.
To ease liquidity management, mutual funds will now be allowed to undertake intraday borrowing for settlement-related mismatches, foreign exchange obligations and mark-to-market derivative payments. Such borrowing must be repaid on the same day and cannot be used for leverage.
Sebi board also proposed a mechanism to accelerate approvals for AIF schemes, reducing launch timelines for most funds to 10 working days. Certain categories, including AI-only schemes and Angel Funds, have been exempted from mandatory merchant banker involvement.
The regulator approved measures to deepen the municipal bond market, including allowing municipalities to raise funds for refinancing existing project debt and creating a framework for pooled financing vehicles.
Separately, Sebi is also aligning securitised debt regulations with the RBI framework and has approved a new Code of Conduct for its board members and officials based on recommendations of a high-level committee on conflict-of-interest and disclosure norms.
Sebi’s board has also approved an evidence-based review of regulations governing SME capital raising in securities markets for FY27. The review, recommended by an external experts advisory committee constituted in December 2025, aligns with the Union Budget’s push for periodic assessment of financial-sector regulations.
FACTBOX
-- Small value claims up to ₹10,000 (physical) and ₹30,000 (demat) to get faster processing with minimal paperwork.
-- Monetary threshold for claims with simplified documentation doubled to ₹10 lakh for physical holdings and ₹30 lakh for demat holdings.
-- PAN and probate of will requirements removed; combined affidavit-cum-NOC and QR-coded death certificates allowed.