InvestorQ : What is transmission of shares? Is it different from transfer?
Dia Deshpande made post

What is transmission of shares? Is it different from transfer?

Niraja Mehta answered.
3 years ago
Transfer of shares is voluntary. You transfer the shares under the following circumstances. For example, if you sell shares you have to transfer shares out of your demat account. Similarly, when you when you want to transfer shares to your wife or child, you can execute an off-market transfer of shares into their DP account. Basically, the transfer of shares is something that you do voluntarily. Shares come into your account when you buy shares or when somebody transfers shares into your account. Shares are transferred out of your account when you transfer shares to somebody or sell the shares.
Transmission happens by the operation of law. Transmission is the process by which securities of a deceased account holder are transferred to the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder by Submission of Notarized death certificate along with the relevant legal documents. In case of the death of the sole holder, for the purpose of transmission of securities, the nominee has to submit a duly filled-in transmission form, notarized copy of death certificate and an affidavit in the prescribed format to the DP. After verifying these documents and, if found in order, the DP will transmit the securities to the account of the nominee. In case nomination is not made by the sole account holder, the securities would be transmitted to the account of a legal heir(s), as may be determined by an order of the competent court. However in cases where the value of securities to be transmitted is less than Rs. 1,00,000/- the DP may process the request based on submission of a necessary letter of indemnity, surety, affidavits, and NOC documents. In the event of the death of one of the joint holders, the securities will be transmitted to the surviving holder(s) on submission of Transmission Form and notarized copy of the death certificate of the deceased joint holder to the DP. For transmission of securities, the account of the surviving holder(s) must be in the same sequence in which the names appear in the joint account to be closed.