The Central Depository Services Limited (CDSL) on July 27, 2026, has introduced enhanced system validations to ensure accurate and compliant transmission of securities in cases involving the death of a beneficial owner. The update focuses on PAN validation in intra-depository transmission requests to improve transparency and ensure securities are transferred to the rightful beneficiaries.
The new validations apply to three transmission scenarios: surviving holders, nominees, and legal heirs. For surviving holders and nominees (where PAN is available), the system will verify the PAN of the target account against the source records, approving only matching cases. If nominee PAN is unavailable, the request will still be processed, but Depository Participants (DPs) must exercise due diligence. In the case of legal heirs, DPs are responsible for ensuring transfers are made to the correct beneficiaries.
Additionally, it is now mandatory to capture the Date of Death and Death Intimation Date in the demat account before initiating any transmission request. These system enhancements will be implemented in the CDSL system effective July 31, 2026 (EOD), and DPs are required to update their back-office systems accordingly to ensure compliance.
[Notification No. CDSL/OPS/DP/POLCY/2026/504]
