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Stock price

11 February 2024

Do mkt value of stocks held by an investor in a DEMAT a/c of a bank change in usual manner with rise/fall of share mkt after his/her passing away till legal heirs get succession certificate from court, or it is frozen at the value on the date of his/her death?

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5 Replies

Saravanan nagaraj (463 Points)
Replied 12 February 2024

The court approval is necessary for the successful transmission of shares to the heirs of the deceased account holder. Each legal heir will individually have to present their legal affidavit to the court for approval.

sabyasachi mukherjee (26067 Points)
Replied 12 February 2024

Since the actual holder is alive stay keep calm

Amit Kumar Das (Retd) (220 Points)
Replied 13 February 2024

Dear Mr Mukherjee,

You have misunderstood me or I could not put it correctly.

Actual owner is not alive and expired long ago. Her two legal heirs , a son and a daughter, are American citizens. Both are living there for many years. 5 years ago they applied to a district court in West Bengal for succession certificate for respective parts of movable property left behind their deceased mother. Movable property in question is a portfolio of stocks in a DEMAT a/c in a bank.

Hopefully succession certificates will be issued soon.

My question is whether market value of the stocks will fluctuate in the usual manner with the rise/fall of share market or will remain frozen at the value of the day of death of the original owner since there has been no trading since her death.

Saravanan nagaraj (463 Points)
Replied 13 February 2024

Please check their recent statement from demat account or stocks statement. Then you will know the current value of stock.

Bankers or Share trading companies usually send email statement. Please check their parent email or visit in-person with authorisation from legal heirs.

Yasaswi Gomes new (Finance ) (4479 Points)
Replied 23 February 2024

The market value of stocks held by an investor in a DEMAT account can fluctuate with the rise and fall of the share market even after their passing away. Let’s explore this further:

Post-Death Market Fluctuations:
- After the investor’s demise, the market value of the stocks in their DEMAT account continues to change based on market conditions.
- The value is not frozen at the date of death; it reflects market movements.
Transmission Process:
- When legal heirs seek to transfer the shares to their names, they follow the transmission process.
- The transmission process involves transferring ownership from the deceased investor to the legal heirs.
Succession Certificate:
- Legal heirs typically need a succession certificate from the court to establish their right to inherit the assets.
- Until the succession certificate is obtained, the DEMAT account remains in the deceased investor’s name.
Market Risk:
- During this period, the market value of the stocks can increase or decrease.
- Legal heirs bear the risk of market fluctuations until the transmission is completed.
Timely Action:
- Legal heirs should initiate the transmission process promptly to minimize exposure to market volatility.
- Once the transmission is complete, the DEMAT account reflects the legal heirs’ ownership.
Consult Professionals:
- Legal advice and assistance from professionals (such as lawyers or financial advisors) are crucial during this process.
- They can guide legal heirs through the necessary steps and help manage the assets effectively.