Mutual Fund Transmission Process in India (2026): Nominee & Legal Heir Claims After Death

When a mutual fund investor passes away, their units don’t automatically move to a spouse, child, or other family member — they have to be formally transmitted. Transmission is the regulated process through which units held by a deceased unit holder are transferred to a registered nominee, or, in the absence of one, to the legal heirs. It is governed by standards set by AMFI (the Association of Mutual Funds in India) and implemented uniformly by every AMC and RTA (CAMS, KFin Technologies) across the industry.

This page walks through how the process works today, the documentation involved, and what changed after SEBI’s July 2026 push to simplify it further.

The Six Transmission Scenarios

The documentation required depends on how the folio was held and whether a nominee was registered.

1. Death of the 2nd or 3rd Joint Holder

When a folio has multiple joint holders and one of the later-named holders passes away, the surviving holders simply need the deceased’s name deleted from the folio.

• Form T1
• Original or notarized death certificate
• Fresh bank mandate, if the registered bank account is changing
• Updated nomination form, if applicable
• Deceased’s KYC status verified as compliant

2. Death of the 1st Holder (Survivors Continue)

If the primary (first) holder dies but other joint holders remain, the folio continues in the surviving holders’ names.

• Form T2
• Death certificate (original or notarized copy)
• Surviving holder’s self-attested PAN card
• Bank proof: cancelled cheque or a 3-month bank statement
• “KYC complied” status for the surviving holder

3. Claim by a Registered Nominee

This is the simplest path, and the reason nomination matters so much — see our detailed guide on mutual fund nominees.

• Form T3
• Death certificate (original or notarized)
• Nominee’s self-attested PAN
• Bank details in the nominee’s name
• KYC documentation
• Signature attestation: bank manager attestation up to ₹5 lakh; Notary Public or Judicial Magistrate attestation above ₹5 lakh

4. Claim by Legal Heirs (No Nomination Registered)

Without a nominee, the process is the same Form T3, but the documentation scales up sharply with claim value.

• Form T3
• Death certificate, claimant’s self-attested PAN, bank details, KYC
• Up to ₹5 lakh: bank manager attestation, indemnity bond, individual affidavits from heirs
• ₹5–10 lakh: notarized will or legal heirship certificate, plus an indemnity bond
• Above ₹10 lakh: probated will, succession certificate, or letter of administration

The ₹5 lakh and ₹10 lakh thresholds are applied on the aggregate value across all folios held with that AMC, not per folio.

5. HUF — Change of Karta

When the Karta of a Hindu Undivided Family folio dies and the HUF continues.

• Form T4
• Death certificate of the deceased Karta
• Bank letter confirming the new Karta’s signature
• New Karta’s KYC compliance
• Indemnity bond from all surviving coparceners
• Notary/JMFC attestation required above ₹5 lakh

6. HUF Dissolution After the Karta’s Death

Where the family chooses to dissolve the HUF rather than appoint a new Karta.

• Form T5
• Death certificate, claimant’s PAN, KYC, bank details
• Indemnity bond
• Notarized settlement deed or partition deed

Universal Requirements Across All Scenarios

Regardless of which form applies, AMCs and RTAs will typically also check:

• The deceased’s ID proof — PAN, Aadhaar, Voter ID, or Passport
• That names match consistently across all submitted documents
• Bank mandate validation via a “penny drop” (small IMPS test transfer)
• PAN–Aadhaar linking status
• A fraud-prevention notice sent to the investor’s last registered address before the claim is processed

Minors as beneficiaries require guardian documentation, with KYC, PAN, and attestation done by the guardian. Sikkim residents may submit alternative identity proof in place of PAN.

The 10 Business Day Cooling-Off Period

Once units are transmitted into a nominee’s or legal heir’s name, AMFI’s standard process requires a cooling-off period of 10 business days before those units can be redeemed. This gives the claimant time to review their holding — and it’s a common source of confusion for families expecting an immediate payout, so it’s worth planning for.

What Changed: SEBI’s July 2026 Simplification

On July 17, 2026, SEBI issued a press release (PR No. 41/2026) directing AMFI to further simplify the transmission standards, specifically to remove two friction points that commonly delayed genuine claims:

• Address mismatches: Where the deceased’s recorded address doesn’t match current documents, AMCs may now rely on the latest available address, as long as it’s backed by supporting documents — rather than insisting on an exact match to old records.
• Name and signature mismatches: AMCs are permitted to adopt the same harmonized framework SEBI already prescribes for RTAs under its Master Circular of February 6, 2026. In practice, this means a name mismatch can be resolved with self-certified documents like Aadhaar or Passport, and a signature mismatch is handled through a defined procedure based on the nature of the discrepancy — instead of case-by-case discretion at each AMC.

SEBI has also directed AMFI to train AMCs and RTAs so these standards are applied consistently across the industry, rather than varying fund house to fund house.

Why This Matters

Transmission claims happen at a difficult time for families, and inconsistent documentation demands across AMCs have historically added friction on top of grief. These changes don’t eliminate the process — the forms, thresholds, and cooling-off period above still apply — but they close two of the most common reasons claims used to get stuck: an address that no longer matched, or a name that was spelled slightly differently on an old KYC record versus a current ID.

The single biggest thing an investor can still do to make this process easier for their family is straightforward: register a nominee, and keep KYC and address details current. A claim routed through a valid nominee (Form T3) is materially simpler than a legal-heir claim with no nomination on file.

Need Help With a Transmission Claim?

If you’re navigating a transmission claim for a family member’s mutual fund holdings, or want to review your own nominations and KYC details before it becomes someone else’s problem, our team can guide you through the exact forms and documentation your situation needs.