What happens to the shares in a demat account after the holder dies?

The shares are transmitted, meaning moved, to the nominee or legal heirs through a process called transmission. Nothing is sold automatically; the shares simply sit in the account until someone claims them with the right documents.

If a nominee is registered, the process is fairly simple. The nominee submits a transmission request form to the depository participant, along with a notarised or attested copy of the death certificate and their own KYC. The nominee also needs a demat account of their own, since the shares are moved into it.

Without a nominee, it gets slower. The legal heirs may need a succession certificate, probate of the will, or other legal documents, depending on the value of the holding and the DP’s rules. For a hypothetical portfolio worth ₹15 lakh, this can mean months of paperwork instead of a few weeks.

Remember that the nominee receives the shares but may hold them in trust for the legal heirs as per the will or succession law. If a family disagreement is likely, a clear will matters as much as the nomination.

The most useful thing you can do today: check that your nominee is updated and that your family knows which broker you use. We cover these practical basics in the opening module of our Diploma in Stock Market.