Transmission cum dematerialisation

Two things can happen to a jointly-held physical certificate after one holder dies. The surviving holder's name needs sorting out on the certificate. And the certificate itself may need to go into electronic form. The workbook does not make an investor do these as two separate trips.

A surviving joint holder can submit both requests together. That combined step is called transmission cum dematerialisation.

From Chapter 7, section 7.3.5: on the death of one or more joint holders, the surviving joint holder(s) can get the deceased holder's name(s) removed from the security certificate(s) and get them dematerialised, by submitting the certificates along with the Transmission Form and the DRF together to the Participant, plus the original or a notarised or Gazetted-Officer-attested copy of the deceased holder's death certificate. The DP must ensure the resulting demat account is opened only in the name(s) of the surviving holder(s).

Mr and Mrs Tandon jointly hold a physical certificate for 1,000 shares. Mr Tandon dies, and Mrs Tandon wants his name removed from the certificate and the shares dematerialised into her own account, in one go rather than two separate applications.

She submits the physical certificate along with the Transmission Form, the DRF, and a notarised copy of her husband's death certificate to her DP. Her DP processes both steps together, and ensures the resulting demat account is opened solely in Mrs Tandon's name — with no trace of her late husband as a holder.

Chapter 7, section 7.3.5, sets out this combined procedure immediately before the Indemnity Bond procedure. Expect a question on the two documents that must accompany the certificates together, and on whose name the resulting account must be opened in.

• Both the Transmission Form and the DRF must be submitted together — one alone is not enough.
• The resulting demat account must be opened in the surviving holder's name only — the deceased holder cannot remain on it in any form.
• Do not confuse this with transposition cum dematerialisation, which reorders existing living holders' names rather than removing a deceased one.