Mutual Funds and Shares After a Death in India: The 2026 Transmission Rules
Published by Karan Bindal, Founder
When an investor dies, mutual funds and shares pass on through a process called transmission. SEBI simplified this in a circular dated 23 July 2026, which took effect about 30 days later. It covers listed shares and mutual fund units, on the death of a sole holder or all joint holders. Disputes are not covered and go to court.
Surviving joint holder
If one joint holder dies, the survivor needs only a copy of the death certificate. The rules say no KYC, indemnity or undertaking may be demanded.
There is a nominee
Documents:
- Transmission request form
- Client Master List of the nominee's demat account
- Verifiable death certificate
- Share certificates, or the mutual fund statement of account
The nominee receives the investments as a trustee on behalf of the legal heirs. The Supreme Court said in Shakti Yezdani (2023) that a nomination does not override succession law, and SEBI's text now says the same. The company or fund is discharged once it transfers. The heirs' rights continue.
There is no nominee
This depends on the value, which is measured at the previous day's closing price.
| Route | Physical shares | Demat |
|---|---|---|
| Quick Transmission Processing | Up to ₹10,000 | Up to ₹30,000 |
| Simplified documents | Up to ₹10 lakh | Up to ₹30 lakh |
| Full documents | Above that | Above that |
For physical shares, the value is per company, and for mutual fund units it is per fund house.
Quick Transmission Processing is only for parents, spouse, children and parents-in-law. The request goes on plain paper with proof of relationship.
Simplified documents means a notarised indemnity bond, along with either a notarised affidavit-cum-no-objection from all legal heirs or a family settlement deed.
Full documents means a notarised affidavit-cum-no-objection from all legal heirs, and any one of these:
- A copy of the will, with a notarised indemnity
- A legal heirship certificate from a revenue authority not below Tehsildar, with a notarised indemnity
- A succession certificate, letter of administration or court decree
Probate is no longer mandatory under these rules.
What counts as a verifiable death certificate
Any of the following: the original, a copy attested by the nominee and checked against the original, a copy attested by a notary or gazetted officer, or a certificate with a QR code.
How long it takes
Within 21 calendar days of receiving all the documents. The entity must give written reasons for any delay or rejection, and must tell you straight away if anything is missing.
You will need your own demat account
Physical shares are processed into demat. Open a demat account first if you do not have one.
How to find what the person held
- MF Central (mfcentral.com), run by the two main mutual fund registrars, CAMS and KFintech
- MITRA, SEBI's tracer for inactive mutual fund folios, which is open to nominees and legal claimants
- Old statements, bank debits for SIPs, dividend credits and income tax returns
- Emails from fund houses and brokers
There is one real gap. Consolidated statements usually go to the investor's registered email or phone, and we did not find an official route for a family without access to these. In that case, go through the registrars and fund houses with the death certificate. Folios with a missing PAN or address may also not show up in a consolidated statement.
Do not log in to the person's accounts to sell or move anything. Use the transmission process.
Nomination for your own investments
Since 1 September 2026, SEBI's rule is up to three nominees, replacing the earlier limit of ten, and new single-holder accounts must either nominate or opt out. If you do not give percentages, the split is equal.
Name a nominee, make a will, and tell your family which apps you use. Our free family checklist has a section for this, and Aakhri Pal keeps your investments, folios and nominees in one private place.
See also: nominee vs legal heir and legal heir vs succession certificate.
Last checked: 30 October 2026. Platforms may still be updating to the new rules, and fund houses may still use older form names such as T1, T2 and T3. This is general guidance, not legal or investment advice.
Sources: SEBI transmission framework, 23 July 2026, via NSDL · Summary of SEBI's May 2026 nomination rules · Outlook Money on MITRA