What Happens to Shares and Investments After Death?

Investments are often more scattered than bank accounts. A person may have held shares through multiple brokers, mutual funds through different AMCs, and physical share certificates that have never been dematerialised. Identifying and transmitting all of these requires patience and methodical work.

Demat Accounts

Demat accounts are held with a Depository Participant (DP) — typically a broker or bank. Where a nominee exists, the DP will transmit the securities to the nominee's demat account on production of the death certificate and required forms. Where there is no nominee, a Succession Certificate or other succession documentation is generally required. The process is governed by SEBI regulations and the depository's (NSDL or CDSL) procedures.

Physical Share Certificates

Physical share certificates — particularly common in older portfolios — require transmission through the company's Registrar and Transfer Agent (RTA). The process involves submitting the original certificates, the death certificate, and succession documentation. SEBI has mandated dematerialisation of physical shares, so the transmission process now typically involves converting to demat form.

Mutual Funds

Mutual fund folios are held with the Asset Management Company (AMC) or through a registrar such as CAMS or KFintech. Where a nominee exists, the transmission process is relatively straightforward. Where there is no nominee, the process requires succession documentation. Families should check for folios across multiple AMCs — a person may have invested through different platforms over the years.

Joint Holdings

Where investments were held jointly, the surviving holder generally continues to hold the investment. The deceased's name is removed from the folio or account on production of the death certificate.

Unclaimed Dividends

Dividends that were not claimed during the deceased's lifetime may have been transferred to the Investor Education and Protection Fund (IEPF). These can be claimed, but the process involves a separate application to the IEPF Authority. Families should check for unclaimed dividends as part of the broader process of identifying the deceased's financial relationships.

Records to Look For

Families should look for: demat account statements, broker contract notes, mutual fund account statements, physical share certificates, dividend warrants, and any correspondence from AMCs, RTAs, or brokers. Annual Information Statements (AIS) from the income tax portal can also help identify investments.