succession certificate for demat account

Face value.

I agree with Makkadji

Court fee is to be  calculated on the face value of shares held by the deceased.Without getting sccession Certificate the shares will not be transferred since no nominination given by the deceased.

 I respectfully differ with the opinion of my colleagues. For the shares listed in the Stock Exchanges, the appropriate value to be declared is ONLY the market value, as on the date of filing the application. Usually the courts send a communication to the companies for this purpose and hence declaring the face value could be construed as a mis-declaration, The National Depository Services Limited or the Central Depository Services Limited, who are the custodians for demat shares provide for alternative process in lieu of succession certificate and please approach them.

vasudevan

Mr.Vasudevan is correct.

It has to be on the market value of the shares.  I would like to clarify here further that it is a descretionary provision in the case of NSDL or CDSL on the basis of various notifications by virtue of which 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.

Thanks Mr.Vasudevan for such valuable inputs.

Best regards

Daksh

 Shares are valued at face value.

Shares face value is correct value as market value is not constant and it is Notional Gain.

Housing Cooperative Society  at Ghatkopar - Shares to be transfered on death of member. Whether face value to be taken for sucession certificate application or Market value of flat to be considered.

dear colleagues

i am posting after a long time.

i am having a similar issue. tn court fee act schedule I does not specify what is meant by "value". the face value is very clear from the share certificate. but market value is difficult to determine. my question is there any clear authority in the form of high court or supreme court judgements on this issue? please guide me. thanks/ 

The Court asks to give valuation reports from approved valuer. Shares are finance releated hence as per act  any CA can give report.

dear learned sir

thanks for your kind reply. if this is the usual procedure so be it. but with great respect, i do not find anything in the act about this point. and will the court allow one of the legal heirs (who is a CA, ICSI and ICWA) to give such a report? 

dear colleagues

i would like to get a reply from mr.ramesh, our learned member and a retired district judge (who might have dealt with so many similar matters) and/or any other learned member from tamil nadu on this point (whether the value of shares is to be taken on the face value or the market value which is extremely volatile for the purpose of computation of court fee).  thanks 

There will be a huge difference between face value and market value. Market value can be a 1000 times the face value.  Market prices are volatile is no reason not to base things on market quotation. Once upon a time when there was no dematerialisation, there were transfer forms for transfer of shares. Stamp duty for the transfer was based on the market quotation only and not on face value. In the case of shares in Co-operative Housing Societies which are linked to flats, an immovable property, stamp duty is based on value in the Ready Reckoner in Maharashtra. Long ago when shares in companies were subject to wealth tax, value was based on the market quotation on the last working day of the financial year.

Dear All Colleagues

Thanks for quick response