An increasing number of non‑resident Indians are confronting the practicalities of inheriting shares, mutual fund units and bonds after a relative’s death. Because many of these assets sit in demat accounts or with custodians, any lapse in paperwork can stall the transfer, temporarily reducing the effective foreign‑resident capital pool that underpins the Nifty and Sensex. Analysts note that delayed transmissions can create short‑term supply‑demand mismatches in equity markets, especially in sectors where NRIs hold sizable stakes. The process begins with obtaining the legal heir certificate and the deceased’s death certificate, followed by updating the KYC profile of the heir with the respective depository participant or mutual fund house.
Nomination details, if missing, must be furnished through the standard Form‑II for securities or the relevant fund‑house declaration. After the documents are verified, the heir can submit a transmission request, which the registrar processes within 30‑45 days under the Securities and Exchange Board of India’s guidelines. For bond holdings, the same KYC update is required, and the issuer’s registrar must be notified to re‑register the instrument in the heir’s name. Common pitfalls include overlooking the need for a PAN card, failing to inform the bank that holds the demat account, and assuming that a will alone suffices for transfer.
Experts advise NRIs to keep digital copies of all certificates, maintain an up‑to‑date PAN, and initiate the transmission as soon as possible to avoid interest loss on dividend or coupon payments. By completing the transmission swiftly, NRIs not only safeguard their inherited wealth but also help maintain steady foreign participation in Indian markets, supporting the broader stability of the Nifty and Sensex.