Transmission of units: The requirements

Investor queries are regularly received on the requirements for transmitting units to a nominee, joint holder or legal heir(s) on the death of a unit holder.

The documents required to effect transmission are prescribed by the respective asset management companies and they may marginally vary. We reply to investor queries on the requirements for transmission:

What are the requirements for transmitting units to the remaining holder on the death of the first holder?

The following documents are required on the death of the first holder if there are joint holders: A letter is required from the surviving unit holders to the fund or registrar requesting for transmission of units.

A format of the letter is available on AMCs' 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.

Some funds insist on the investor name being printed on the cheque leaf.

If such a cheque leaf is 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 and the AMCs.

Know-your-customer (KYC) acknowledgement of the surviving unit holders is also required.

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).

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 claimants to the fund or the registrar requesting for transmission of units and the death certificate in original or photocopy duly notarised or attested by gazette officer or a bank manager, the following details are required: Bank account details of the new first unit holder along with attestation by a bank branch manager or cancelled cheque bearing the account details and accountholder's name; 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 on the AMCs' Web sites.

Proof of date of birth if the nominee is a minor is also required; attested copy of the proof of identity of the natural guardian if the nominee is a minor.

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

Along with a letter from claimants to the fund or the registrar requesting for transmission of units and the death certificate in original or photocopy duly notarised or attested by gazette officer or a bank manager, the following details are required:

Bank account details of the new first unit holder along with attestation by a bank branch manager or cancelled cheque bearing the account details and accountholder's 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 are mandatory. 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 or succession certificate or claimant's certificate issued by a competent court, or letter of administration, in case of intestate succession.

(Contributed by Investor Education Team of CAMS. The views expressed herein are general practices in the mutual fund industry and may vary on a case-to-case basis.)

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