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Can a demat account be transferred to another person after death?
The death of demat account holder initiates the process of transfer, where the DP is informed of their demise and documents are submitted. After that, the DP subsequently verifies those documents and transfers the securities to eithera joint/individual account owned by the deceaseds legal heirs.
What is transmission of shares in a demat account?
What is transmission of dematerialized securities? Transmission is the process by which securities of a deceased account holder are transferred to the account of his legal heirs / nominee.
What is the meaning of Dematerialised securities?
Dematerialisation is a process through which physical securities such as share certificates and other documents are converted into electronic format and held in a Demat Account. A depository is responsible for holding the securities of a shareholder in electronic form.
Whats the difference between transfer and transmission of shares?
The transfer of shares is a voluntary act by the holder of shares and takes place by way of contract. Whereas, the transmission of shares takes place due to the operation of law that is on the death of the holder of shares or in an event where the holder becomes insolvent/lunatic.
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