Transmission of units

Investor queries are received on the requirements for transmitting units to a nominee/joint holder/legal heir(s) on the demise of a unit holder.

Here are the general requirements for effecting a transmission of units. The documents required are prescribed by the respective asset management companies and may vary marginally.

Surviving holder

What are the requirements for transmitting units to the surviving holder on the demise of the first holder?

The following documents are required on the demise of the first holder if there are joint holder(s).

Letter from the surviving unit holder(s) to the Fund requesting transmission of units. A format of the letter is available at the AMC Web sites.

Death Certificate in original or photocopy duly notarised or attested by a gazetted officer or a bank manager.

Bank account details of the new first unit holder along with a cancelled cheque leaf, the investor name being printed on the cheque leaf. If not available, the bank details should be attested by the bank manager of the new first holder. A prescribed format of the bank details form is available with the Registrars/AMCs.

Proof of KYC verification of the surviving unit holders, if not already available.

Guardian details and KYC proof of the guardian if the surviving holder is a minor.

On receipt of the documents, the mutual fund will delete the name of the deceased holder from the records and the holdings will remain in the name of the other holder(s).

Single holder

If there is a single holder and the deceased has registered a nomination, what are the documents required for the transmission of units?

Along with a letter from the nominee(s) to the Fund/Registrar requesting transmission of units and the Death Certificate in original or photocopy duly notarised or attested by a gazetted officer or a bank manager, the following are required:

Complete bank details of the nominee(s) along with the signature duly attested in original by the banker.

Proof of KYC verification/KYC acknowledgement of the nominee(s).

If the transmission amount is Rs 1 lakh or more, an indemnity bond is to be signed and executed by the nominee. The format is generally available at the AMC Web sites.

Proof of date of birth if the nominee is a minor.

If the nominee is a minor, the guardian should have completed KYC formalities and an attested copy of the proof of identity of the natural guardian should be attached.

Nominee registration

In cases where the nominee is not registered, what are the requirements?

Along with a letter from claimants to the Fund/Registrar requesting transmission of units and the Death Certificate in original or photocopy duly notarised or attested by a gazetted officer or a bank manager, the following are required:

Complete bank details of the claimant along with the signature duly attested in original by the banker and an original cancelled cheque mentioning the account details and investor name.

KYC acknowledgement of the claimant(s).

An Indemnity Bond from the legal heir(s). The format can be obtained from the AMC.

Individual affidavits from legal heir(s) giving details of all the legal heirs of the deceased.

If the transmission amount is below Rs 1 lakh, any appropriate document evidencing relationship of the claimant/s with the deceased unit holder(s).

If the transmission amount is Rs 1 lakh or more, any one of the documents mentioned below:

Notarised copy of Probated Will or legal heir certificate/succession certificate/claimant’s certificate issued by a competent court, or letter of administration, in case of intestate succession.

To facilitate the transmission process, investors are encouraged to register nominees for all their investments.

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