Published on
21 Jul 2023
7 min read

The Step-by-Step Guide to Transferring a Deceased's DEMAT Account

Monika Taparia
Sep 11, 2023

Losing someone close can be overwhelming, and amidst the grief, we're often nudged into sorting out their financial matters, including those elusive DEMAT accounts. If the idea of tackling this feels like you’re decoding an alien language, you're not alone. I've been down that path and I promise, with a little guidance and step-by-step approach, you can sail through. Let's navigate this journey together.

Preliminary Understanding

Before we dive into the technical stuff, let’s get our basics clear. A DEMAT account is like a digital locker where one's shares and securities are stored. Think of it as a bank account, but instead of money, it holds shares. Now, when the account holder passes away, it's essential to either transfer or close this account, so the assets don't remain in limbo. Alright, with that clarity, let's roll up our sleeves and get started.

Gathering Necessary Documentation

Ah, the world of paperwork. It can be daunting, but with a list in hand, it's just a matter of ticking boxes. Here's what you'll need:

  • a. Death certificate: This is a must, as it's the official document that confirms the demise.
  • b. Proof of identity: Whether you're the legal heir or the nominee, your ID proof will be essential.
  • c. Legal heir certificate or probate of the Will: This is crucial if the deceased didn't assign a nominee or if there are multiple heirs.

Keep these documents handy and ensure they're genuine and clear. A bit of preparation here can save you a lot of back and forth later.

Ascertain the Type of Transfer

This is where it gets a tad technical, but stick with me. When transferring a DEMAT account, there are two primary routes:

  • a. Transmission: This is straightforward. If the deceased had been proactive and listed a nominee, the account gets transmitted to this person. It's like passing the baton in a relay race.
  • b. Transposition-cum-Transmission: Now, this is for times when the deceased shared the DEMAT account with someone, say a spouse, and they were the first name on it. In this case, the securities first get transposed to the surviving holder and then transmitted to the nominee or legal heir.

Sounds a bit tricky, but worry not! Once you know which path you're on, the rest becomes much clearer.

Procedure for Transmission

So, you've got your documents and know you're on the "Transmission" path. Here's what's next:

  • a. Reach out to the Depository Participant (DP): These are the folks who manage the DEMAT accounts. Write them a letter or an email, informing them about the account holder's passing. Most DPs are understanding, especially when you're dealing with such sensitive matters.
  • b. Submit the Necessary Documents: Along with your letter, provide the death certificate, your ID proof, and, if required, the legal heir certificate or probate. Think of it as assembling ingredients before you bake; once everything is at hand, the process moves smoothly.
  • c. Wait for Verification: Once the DP verifies the documents – and from my experience, they're pretty swift – they'll proceed with the transmission. This means the DEMAT account’s assets are now in the hands of the nominee or the legal heir.

Procedure for Transposition-cum-Transmission

If you're on this route, it's a two-step dance. But with the right moves, it's all rhythmic:

  • a. Submit the Transposition Form: Along with the transmission documents, you'd need to submit a transposition form to the DP. This essentially lets them know that you first want to transpose (or rearrange) the names on the account, followed by the transmission.
  • b. Verification & Execution by DP: Once the DP gets the green light internally post their verification process, the securities will first be transposed to the surviving joint holder. After that, they will be transmitted to the rightful nominee or legal heir.

Dealing with Discrepancies

Sometimes, even with the best preparation, there can be hiccups. Maybe there's a tiny mismatch in a name, or perhaps the DP needs additional clarification on something. If this happens, don't panic. Communicate openly with the DP, and more often than not, these issues can be sorted out with a bit of patience and additional documentation, if necessary.

Selling Securities from the Transferred DEMAT Account:

Now that the assets are safely in your hands (or the rightful nominee/legal heir), you might be wondering about the next steps. To liquidate or to hold? Here's how you can proceed:

Initiate the Sale

Once the account's assets are transferred, selling them is like selling any other securities you own. You can contact a stockbroker, provide them the details, and they'll guide you through the process. But a word of caution – it's always worth taking a moment to consider market conditions and perhaps even seek some financial advice. After all, these assets are a part of your loved one's legacy.

Closing the DEMAT Account:

If you feel there's no need to keep the DEMAT account active post the transfer and sale of securities, here's what you can do:

  • Submit a Closure Request: Inform the DP that you wish to close the account. They'll provide you with an account closure form.
  • Settle All Dues: Before closure, ensure that any pending dues or charges associated with the account are settled.
  • Submit the Form with Required Attachments: Once filled, you'll need to return the form to the DP, possibly along with some final documentation they might require.
  • Confirmation of Closure: Typically, after all procedures are complete and verifications done, the DP will confirm the account's closure. You can breathe a sigh of relief here.

Pro-Tips for a Smooth Transition

From my journey and the countless stories I've heard, here are a few golden nuggets:

  • Regularly Update Nomination: Situations change, relationships evolve. Ensure that the nominated person on the DEMAT account is always the intended beneficiary.
  • Maintain Clear Records: Store all important documents in a known and accessible place. This can be a lifesaver during trying times.
  • Open Communication: Encourage open financial conversations in the family. It not only prepares everyone but also ensures transparency and trust.


Navigating the transfer of a deceased's DEMAT account might feel like threading a needle in the dark initially. But with the right information, a sprinkle of patience, and a dash of perseverance, it becomes a task you can handle with confidence. Remember, you're preserving and taking forward a part of your loved one's legacy, and with this guide, I hope to have made that journey just a bit simpler for you. If you ever feel stuck, there's always help around – be it through DPs, financial advisors, or even friends who've been through a similar journey. You're not alone in this.