Several Legal Heirs, One Set of Shares: How Transmission Works When the Family Is Large

With one heir, transmission is paperwork. With five, it becomes a family project. The registrar's requirements barely change; what takes the time is getting everyone to sign the same thing.

Who counts as a legal heir

That depends on the personal law that applied to the deceased, and on whether there was a will. For a Hindu who died without a will, for example, the Hindu Succession Act puts Class I heirs, including the widow, sons, daughters and mother, first, and they share equally. Other communities follow different rules. Get this right before collecting NOCs, because a missing heir means a missing signature.

Two ways to structure the claim

• Transmit to one heir, with NOCs from the rest: the other heirs each give a notarised affidavit-cum-NOC consenting to transmission in that person's name. It's the simplest for the registrar. The family then shares out the value between themselves.
• Transmit to more than one heir: the shares can be registered in joint names. A demat account can hold at most three names, so larger families usually choose one or two heirs to hold, or divide the shares under a written family arrangement or court order that the registrar can follow.

Whichever you choose, the NOCs have to match it. An NOC consenting to transmission to one sister doesn't work if the claim is later made jointly.

What each heir signs

Under SEBI's July 2026 framework, holdings within ₹10 lakh per company (physical) or ₹30 lakh (demat) need an indemnity bond and an affidavit-cum-NOC from the other heirs. Above the limits, add a will, a legal heirship certificate or a succession certificate. The full rules.

Things that slow large families down

• An heir abroad: their affidavit has to be notarised and apostilled or attested where they live. Start this first; it takes longest. NRI heirs.
• An heir who died after the shareholder: that heir's own legal heirs step into their place, and each of them signs
• A minor heir: a minor can't give a valid NOC personally. Talk to a lawyer about the guardian's role before you proceed.
• Names spelt differently: across the death certificate, the folio and heirs' PAN cards: sort out affidavits explaining the variations before you file, not after an objection
• An heir who won't sign: SEBI's simplified routes exclude disputes. That leaves a succession certificate or other court process, and a lawyer's advice.

Tax

Receiving shares by inheritance isn't treated as a sale, so there's no capital gains tax on transmission itself. Tax arises when the heir who holds them sells. If the family plans to divide the proceeds, speak to a chartered accountant about how best to do that.

A practical order of work

• Trace every holding and add up the value per company, to see which side of the limits you're on
• Agree, in writing, whose name the shares will go into
• Get every heir's KYC and PAN copies together
• Have all the NOCs drafted in the same form, and signed and notarised in as few sittings as possible
• Open the demat account that will receive the shares before you send anything