InvestorQ : Is transfer of shares and transmission of shares one and the same?
Abhi Yadav made post

Is transfer of shares and transmission of shares one and the same?

Answer
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Niti Shenoi answered.
2 years ago


To put in simple terms, when you sell shares you transfer them from your demat account. A transfer is a result of the action. Transmission happens when the beneficial owner dies and the shares have to be passed on to the legal heirs or the nominees. Transmission happens by operation of the due process of law. Let us understand transmission a little more clearly.
Transmission is the process by which securities of a deceased account holder are transferred to the account of his legal heirs/nominee. Process of transmission in case of dematerialized holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to the DP, whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to independently correspond with each company in which securities are held. The next logical thing is how does the legal heir or the nominee claim the shares when the beneficial owner dies?
The claimant should submit to the concerned DP an application i.e. Transmission Request Form (TRF) along with the following supporting documents -
In case of death of sole holder; where the sole holder has appointed a nominee, a notarized copy of the death certificate has to be submitted. The transmission process is much simpler when the nominee is already in place.
In case of death of the sole holder; where the sole holder has not appointed a nominee also you will require a notarized copy of the death certificate. Additionally, you will also be required to submit one of the following documents: (Succession certificate / Copy of probated will / Letter of Administration. The DP, after ensuring that the application is genuine, will transfer securities to the account of the claimant. The major advantage in case of dematerialized holdings is that the transmission formalities for all securities held with a DP can be completed by interaction with the DP alone, unlike in the case of physical share certificates, where the claimant will have to interact with each issuing company or its registrar separately.