SEBI Unveils Quick Transmission Process To Simplify Securities Inheritance For Investors

The Securities and Exchange Board of India (SEBI) has launched a new Quick Transmission Processing (QTP) mechanism designed to streamline the transfer of securities following an investor's death. This initiative significantly reduces the administrative burden on immediate relatives by eliminating the mandatory requirement for probate of a will for smaller claims. The new rules apply to physical securities valued up to ₹10 lakh and dematerialized holdings up to ₹30 lakh.

Historically, the process of transmitting securities was cumbersome, often requiring lengthy legal procedures and probate, which deterred many families from claiming assets. By simplifying documentation, SEBI aims to enhance the ease of doing business and ensure that retail investors' families can access their investments without unnecessary legal hurdles. This move is part of a broader regulatory push to modernize market infrastructure and improve the overall investor experience in the Indian capital markets.

The implementation of QTP is expected to reduce the backlog of unclaimed assets held with depositories and listed companies. Investors and their nominees should review their current nomination details to ensure they are updated, as this will facilitate the smoother application of the new transmission rules. SEBI is also focusing on shifting the administration of online dispute resolution to Market Infrastructure Institutions, which will further accelerate the resolution of investor grievances by the end of the current fiscal year.