Death of owner
Though nomination is essential for all financial instruments, there are times when investors forget to nominate, or individuals nominated years ago are not relevant today due to events such as divorce or death. If the appointed nominee is still around, the holdings are transferred to him/her once a copy of the death certificate is submitted and the identity of the nominee is verified. The procedure becomes a little complicated if the demat accountholder has not appointed a nominee. In such a situation, the legal heir has a claim to the shares held if the value is below one lakh rupees. If the value is higher, a competent court's orders may be needed before the shares are transferred to his account. In case one of the joint-holder dies, the shares are transferred to the account of the surviving member. If all joint holders die, the shares go to the nominee.