Shares of a deceased holder pass to the nominee or legal heirs by transmission, which the company or depository registers on proof of death and entitlement. Where dividends have gone unclaimed for seven consecutive years, the shares and dividends are transferred to the Investor Education and Protection Fund, and the rightful owner or heir can reclaim them at any time by filing Form IEPF-5 with the Authority. An NRI needs a PAN and a demat account to receive the shares.
- To IEPF after
- 7 years of unclaimed dividends
- Claim form
- IEPF-5, filed online
- Shares issued in
- Demat form only
- Time limit to claim
- None
Finding out what exists
Start with whatever paper survives: share certificates, dividend warrants, annual reports, bank passbooks showing dividend credits, or a depository statement. From the company name and folio number we trace the present position with the registrar and transfer agent: the current name of the company after mergers and name changes, the number of shares after bonuses and splits, unpaid dividends, and whether the holding has been moved to IEPF. The IEPF Authority's website has a public search of transferred shares and amounts by investor name.
For demat holdings, the depository participant can confirm the holdings and nomination on production of the death certificate.
Transmission to nominee or heirs
If a nominee was registered, the shares are transmitted to the nominee on a simple request with the death certificate and KYC documents. Where there is no nomination, the securities regulator's norms set documentation by value: for smaller holdings, a legal heirship certificate or family affidavit with indemnity and no-objection from other heirs may suffice; above the thresholds, a succession certificate, probate or letters of administration is required. Joint holdings pass to the surviving holder.
Companies no longer issue physical certificates on transmission. They issue a letter of confirmation, which you lodge with your depository participant to have the shares credited in demat form. Sale of physical shares has been barred since April 2019, so dematerialisation is unavoidable.
Claiming shares and dividends from IEPF
Under section 124 of the Companies Act, 2013 dividend unclaimed for seven years is transferred to the Fund, and all shares on which dividend has been unpaid for seven consecutive years follow. Nothing is forfeited: section 125 gives the owner or heir the right to claim them back.
The steps are: obtain an entitlement letter from the company where its procedure requires one; file Form IEPF-5 online; send the signed form, indemnity bond, original certificates or duplicate-issue documents, and entitlement proof to the company's nodal officer; the company verifies and sends its report to the Authority; the Authority approves, credits the shares to your demat account and pays the dividend to your bank account. Where the original holder has died, transmission documents are filed with the claim. Timelines depend heavily on the company's responsiveness, and following up is most of the work.
Problems we resolve along the way
- Lost certificates. Duplicate issue requires an FIR or police complaint, newspaper advertisement, affidavit and indemnity with surety.
- Name and signature mismatches between certificates, PAN and passport, cured by affidavits and gazette or other evidence.
- Companies that merged, delisted or were liquidated, where entitlement must be traced through schemes of arrangement.
- Heirs in several countries, needing coordinated no-objections and attested documents.
- Disputes between heirs, where court orders may be needed.
Holding and selling as an NRI
Inherited shares are held by an NRI on a non-repatriation basis in a demat account linked to an NRO bank account. Dividends are taxable in India with tax deducted at source, at treaty rates if you provide a tax residency certificate. On sale, capital gains use the original holder's cost and holding period, and for listed shares acquired before 1 February 2018 the fair market value on 31 January 2018 may be taken as cost for long-term gains. Sale proceeds are credited to NRO and can be repatriated within the annual limit.
Mistakes that cost NRIs time and money
- Throwing away old certificates of companies that "no longer exist".
- Opening the wrong type of demat account.
- Different name spellings across certificates, PAN and passport with no supporting affidavit.
- Starting many claims at once without first tracing what each holding is today.
A typical situation
A folder from the 1990s
Heirs abroad find thirty share certificates in a late father's cupboard. Tracing shows twelve companies still listed under new names, with bonus and split shares multiplying the holdings, and that most have been moved to the investor protection fund. A succession certificate is obtained, the heir opens an NRO-linked demat account, and claims are filed company by company. Shares and years of dividends are credited over the following months.
Illustration only, based on patterns we commonly see. It is not a real client's case and outcomes depend on the facts.
If you live in...
The Indian law is the same wherever you live. These are the points that differ by where you are.
USA and Canada
KYC documents for the demat account must be notarised and apostilled or consulate-attested.
UK and Europe
Where a UK grant of probate covers the estate, it can support transmission in India after authentication.
UAE and the Gulf
Indian passport holders in the Gulf can complete KYC with embassy-attested copies and an NRO account.
Country pages: UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain
Australia, New Zealand and Asia
Tax residency certificates from Singapore or Australia can reduce Indian tax deducted on dividends.
Country pages: Australia, New Zealand, Singapore, Malaysia
Documents you will need
Send whatever you have found; partial information is enough to start tracing.
- Share certificates or folio numbers
- Old dividend warrants or bank entries
- Death certificate of the holder
- Will, succession certificate or legal heir certificate
- Your PAN, passport or OCI and address proof
- Cancelled cheque of NRO account
- Demat account client master list
- No-objection from other heirs
How we handle it for you
Tracing
We establish each holding's current status with registrars and the IEPF records.
Entitlement
The right document for each holding is identified and obtained.
Account setup
PAN, NRO bank account and demat account are opened or updated.
Lodging claims
Transmission requests and IEPF-5 claims are filed with complete documents.
Follow-through
We pursue companies and the Authority until shares and dividends are credited.
Frequently asked questions
Can an NRI claim shares of a deceased parent in India?
Yes. As nominee or legal heir you can have the shares transmitted to your name on producing the death certificate and proof of entitlement. You need a PAN, an NRO bank account and a demat account.
What is IEPF and why have the shares gone there?
The Investor Education and Protection Fund is a statutory fund to which companies must transfer dividends unclaimed for seven years and the underlying shares. The owner or heirs can claim them back at any time.
Is there a deadline for claiming shares from IEPF?
No. The right to claim does not lapse. Delay only makes documentation harder as records age and heirs multiply.
Do I need a succession certificate to claim inherited shares?
Not always. Where a nomination exists it is not needed, and for holdings below the regulator's thresholds simpler documents with an indemnity are accepted. For larger holdings without nomination, a succession certificate, probate or letters of administration is required.
The share certificates are lost. Can the shares still be recovered?
Yes. The company issues duplicates or a letter of confirmation after a police complaint, public notice, affidavit and indemnity bond are furnished.
Can inherited shares be sold and the money taken abroad?
Yes. After dematerialisation they can be sold on the exchange through your NRO-linked account, and the proceeds remitted abroad within the one million dollar annual limit after tax.
How do I find the current name of an old company?
The stock exchanges and the corporate affairs ministry record name changes and mergers. We trace each certificate to its present company and registrar.
Are dividends unclaimed for many years still payable?
Yes. They are held by the company for seven years and then by the fund, and can be claimed with the shares.
