I have been asked to provide Indemnity bond as a requirement from Way2wealth brokers Pvt Ltd for transfer of shares from my deceased father’s demat account to my account.
Way2wealth mentioned it is a requirement from NSDL. I just wanted to know if indemnity bond is a requirement for transfer of shares.
kar
Yes, an indemnity bond is a requirement for transfer of shares from a deceased person’s demat account to another account. This is because the deceased person is no longer able to sign any documents or give instructions, so the transferee needs to provide an indemnity bond to the demat account holder (NDSL) to protect them from any claims that may arise from the transfer of the shares.
The indemnity bond is a legal document that states that the transferee will indemnify and keep harmless the demat account holder from any claims, losses, damages, or expenses that may arise from the transfer of the shares. The transferee is also required to provide proof of their identity and relationship to the deceased person.
Here are the steps involved in transferring shares from a deceased person’s demat account to another account:
The transferee needs to contact the demat account holder (NDSL) and request a share transfer form.
The transferee needs to complete the share transfer form and submit it to the demat account holder along with the following documents:
The demat account holder will process the share transfer and transfer the shares to the transferee’s demat account.
Disclaimer:
This information is fully given by BARD (Google).