If you hold any physical share certificates of a deceased family member, you should get the name changed on these certificates to become the legal owner of such certificates. These physical shares held in the name of the deceased cannot be sold before transfer of such shares in the name of the new legal owner.
If these shares were held jointly, these shares will get transferred in the name of the Joint Holder. In case these shares were not held jointly and were held in a single name, these shares will get transferred in the name of the nominee.
In case no nominee was registered, you would be required to submit a probate of the will or a succession certificate and these shares will get transferred to the person mentioned in these documents.
Procedure to change name on Physical Shares of a Deceased
You should write an application to the Company to change the name on the Share Certificates. This application for change of name shall be submitted to the Registrar and Transfer Agent or to the Share Department of the Company.
Before initiating the process for transfer of shares you should also check if there is any change in the legal status of the company i.e. has it been acquired/merged with any other company or is the name of the company same or it has changed or any other change.
The following documents are also required to be submitted along with the application for change of name:-
- Physical Share Certificates
- Death Certificate of the Deceased
- PAN Card of the Successor
- Transmission Request Form
- Attested Signatures by Banker of the Successor
- Proof of Address of the Successor
- Any other document as required by the Company
In case these physical shares were held jointly with another holder or nomination has been registered – some of the above documents may not be required to be furnished.
Issue and Demat of New Shares
After receiving the application complete in all aspects along with all the documents, the company will issue the new certificates in the name of the new holders in physical form. However, to sell these shares, such shares should first be converted into dematerialised through a Demat Account.
In order to dematerialise these shares, the original physical shares in the name of the new holder shall be submitted to the organisation with which the new holder holds a Demat Account. In case the new holder does not have any Demat Account, he/she would be first required to Open Demat Account in order to sell such physical shares.