Demat account closure vs saving account closure of deceased
Hardik Desai
(Querist) 26 October 2012
This query is : Resolved
My father expired and he has demat account with bank for all 4 of our family members in joint name i.e his own demat with jointholder as my mom and vice versa and my and my sister's demat where he is joint holder .
I want to sell the shares that are in his demat account as i am in urgent need of money but i don't want to close his saving account as of now as i have yet to receive certain amount in his name and there are certain ECS i.e direct credits in his account and i have still to track from where all ECS are done so that I can intimate them to change the account details in my mother's name for further credits.
I approached the bank and they said that once they receive the death certificate they will close or cancel his name from every account where his name appears and they are after me to submit the documents so that they can close the accounts.
I don't have any other accounts in his name and I have yet to figure out from whom money are still due or from where ECS are done. In case they cancel or close his account I will not receive ECS as they will be rejected and in-case i receive any payments in his name I will not be able to deposit the same any where else
How can I sell the shares and get the money ?
As my father was a joint holder in all demat accounts can only 1 person sign the instruction slip and sell the shares i.e for my mother' demat can she sign and sell the shares or both joint holders signature are required.
Request you to please reply at the earliest possible with a solution
ajay sethi
(Expert) 26 October 2012
please go through RBI circular
RBI/2010-11/93
UBD.PCB. MC.No:13 /13.01.000/2010-11
Treatment of flows in the name of the deceased depositor
In order to avoid hardship to the survivor(s) / nominee of a deposit account, banks are advised to obtain appropriate agreement / authorization from the survivor(s) / nominee with regard to the treatment of pipeline flows in the name of the deceased account holder. In this regard, banks could consider adopting either of the following two approaches:
The bank could be authorized by the survivor(s) / nominee of a deceased account holder to open an account styled as 'Estate of Shri ________________, the Deceased' where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made.
OR
The bank could be authorized by the survivor(s) / nominee to return the pipeline flows to the remitter with the remark "Account holder deceased” and to intimate the survivor(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then approach the remitter to effect payment through a negotiable instrument or through ECS transfer in the name of the appropriate beneficiary.
ajay sethi
(Expert) 26 October 2012
as fr as demat account is concerned on death of your father demat account has trto be closed . you have to open new account in name of other joint holders of the shares . then only shares can be sold
ajay sethi
(Expert) 26 October 2012
In such case the surviving holders of the account have to submit following documents to the DP
Transmission request form
Original or a copy of death certificate of the deceased account holder(s) duly notarized or
attested by a gazetted officer.
Client master report of the demat account in the name of the surviving holder(s)
The DP after verifying the documents submitted can setup a transmission request and transfer the
securities to the account held in the name of surviving holder(s).
