Share trading account money
Viswanadh
(Querist) 09 November 2012
This query is : Resolved
Hi Experts,
I need legal advice for the below:
I am facing an issue of share trading account money in my deceased father's account at Karvy stock broking ltd. The demat account had the nominee and the shares were transmitted to my demat account. But the amount of money in the trading account which is interlinked to the demat account is not yet transferred to me. When I contacted Karvy with regard to this they ask for a succession certificate. Karvy is not ready to share any circular/ policy document from NSDL or Karvy internal. I would like to know why a succession certificate for an account that is linked to the demat account with nominee details registered. Its been more than a month that I have submitted a claim to the money. I stay in Hyderabad and will be grateful to the legal experts
Thanks in advance!!
Guest
(Expert) 09 November 2012
Karvy is right in its asking for succession certificate, as you were nominee merely for the share, not the security/advance money lying with Karvy in the name of your father. You would definitely need succession certificate to claim that amount so that no other legal heir can put his claim later on Karvy. Even for shares, which you have received as a nominee, other legal heirs have also a right to claim their shares out of the property or value of those shares, as you were merely a trustee nominated by your father to recive the share property after his death.
ajay sethi
(Expert) 09 November 2012
it has become a standard practice amongst the Depositories to allow the cases upto the limit of about Two Lac of Rupees based on the representation, affidavits and indeminity affidavits of the Legal heirs or either of them can open a fresh account and on NOC from other legal heirs these securities can get transferred into new account.
ajay sethi
(Expert) 09 November 2012
claimant should submit to the concerned DP an application Transmission Request Form (TRF) along with the following supporting documents
1. In case of death of sole holder; where the sole holder has appointed a nominee
· Notarised copy of the death certificate
2. In case of death of the sole holder; where the sole holder has not appointed a nominee
· Notarised copy of the death certificate
And anyone of the below mentioned documents -
· Succession certificate
· Copy of probated will
· Letter of Administration
The DP, after ensuring that the application is genuine, will transfer securities to the account of the claimant.
The major advantage in case of dematerialised holdings is that the transmission formalities for all securities held with a DP can be completed by interaction with the DP alone, unlike in the case of physical share certificates, where the claimant will have to interact with each Issuing company or its Registrar separately.
prabhakar singh
(Expert) 09 November 2012
Every thing is right but money lying with broker is like money lying with bankers and must be paid to nominee and it is nominees' and other sharers business how to distribute in between in which Karvy would never be held
responsible.hence in my opinion KRAVEY is notoriously playing high handedness for its' own gains which KRAVEY must restrain.File a case of consumer complaint after lawyer's notice to let KRAVEY understand its' wrong.
PARDON ME LAWYER's for a different view .
ajay sethi
(Expert) 09 November 2012
prabhakar singhji every lawyer is entitled to his view point
prabhakar singh
(Expert) 09 November 2012
TRUE SIR ! WHERE DO I DISPUTE THAT?
