Upon the death of the Karta of a Hindu Undivided Family (HUF), the surviving member(s) of the HUF may appoint the eldest surviving male member of the HUF surviving member as the new Karta of the HUF.
(A) For transmission of securities to the account of the new Karta from the account of the deceased Karta, the surviving members through the new Karta shall make a joint application to the DP in the Form specified in Annexure "O" along with the following documents:
- True Copy of the death certificate of the Karta, duly certified by a notary public;
- An appropriate order by a competent court,
Provided however that, if the surviving members or the New Karta express their inability to produce the order of a competent Court, and that the market value of securities lying to the credit of such account as on the date of application for transmission of securities does not exceed Rupees Ten Lakh, then the DP shall process the transmission request on the basis of the following documents:
- Request for transmission in Annexure "O", duly signed by the New Karta;
- A declaration of the list of surviving members of HUF in an affidavit in the prescribed form (Annexure "O"), duly notarised;
- Letter of Indemnity in the prescribed form (Annexure "O") from the surviving members.
(B) Where there is an objection from any member of the HUF, transmission of securities held in the beneficial owner account should be effected only on the basis of a Decree by a competent Court or the Deed of Partition.
The surviving members shall furnish to the DP the certified copy of the Settlement Deed / Deed of Partition / Decree of the relevant Court, duly stamped in case the HUF goes into separation / partition for dealing with the securities lying in the beneficial owner account held by the deceased Karta, and furnish to the DP the details of the beneficial owner accounts of the individual members in order to have the securities distributed to their respective accounts.
DP shall ensure that the documents submitted by the surviving members or the new Karta are in order and shall then effect a transfer of the balances to the client account of the new Karta.
After effecting the transmission, the DP shall close the account held in the name of the deceased Karta.
This has been intimated to the DPs vide Circular No. NSDL/PI/2005/0433 dated March 9, 2005.
