No More Problems to Nominee Now! SEBI New Mechanism

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If an investor dies, their family members / nominees face a lot of problems in getting the shares they hold.

But not anymore!

Today, SEBI announced a mechanism to report an investor's death through KYC Registration Agencies (KRA).

The death of an investor can be reported by :

- joint account holder(s)

- nominee(s)

- legal representative

- family members.

This should be reported to agencies like NSE, BSE along with the death certificate and PAN of the deceased investor.

On verifying the documents,

- all debit transactions in the account will be blocked immediately

- within 5 days of the death, the family member/nominee, will be informed about the procedure for transfer of shares

- the KYC will be updated as "Blocked Permanently".

This shall come into effect from 1st Jan 2024!

There was no uniformity in the procedure and would take a lot of time to transfer the share.

With this move by SEBI the process of transfer of shares will get much faster and easier!

Thanks for reading

Team Digital Herb