As a Mutual Fund distributor, you are often the first point of contact for grieving families dealing with the loss of a unit holder. Guiding them through the transmission (transfer of units to the nominee/legal heir) process smoothly is a critical value-added service.
The AMFI Transmission Documents Matrix is your bible for this. This article simplifies that matrix into an actionable guide.
Core Principle: The document checklist depends entirely on WHO is claiming and the value of the holdings.
Part 1: The Universal Checklist (Almost All Cases)
Regardless of the scenario, the following documents are almost always required:
- Transmission Request Form (TRF): The correct form is key.
- Form T1: For surviving joint holders.
- Form T2: Sole holder deceased, with a registered nominee.
- Form T3: Sole holder or all joint holders deceased, without a registered nominee OR for change of Karta in a HUF.
- Form T4: For appointing a new Karta of a HUF.
- Form T5: For dissolution of a HUF.
- Death Certificate: Original or a copy attested by a Notary/Gazetted Officer. Claimants can also self-attest if they present the original for verification at the AMC branch.
- KYC & PAN of Claimant: Self-attested copies of the PAN and KYC documents of the person(s) receiving the units (claimant, new Karta, or guardian).
- Bank Proof: A cancelled cheque or bank statement/passbook copy (not older than 3 months) of the claimant’s account, bearing the claimant’s name.
Part 2: Scenario-Based Roadmap
Use this flowchart to determine the additional requirements.
Scenario A: Transmission to SURVIVING Joint Holder(s)
- Process: Simplest. The surviving holder(s) automatically become the owner(s).
- Key Docs: Form T1, Death Certificate of the deceased holder, Surviving holder’s KYC/PAN/Bank Proof.
- Additional Docs: Usually none, unless specifically requested.
Scenario B: Sole Holder Deceased – WITH Registered Nomination
- Process: Straightforward. The nominee is the rightful claimant.
- Key Docs: Form T2, Death Certificate, Nominee’s KYC/PAN/Bank Proof.
- Additional Docs: For transmission value > ₹5 lakhs, the nominee’s signature on the TRF must be attested by a Bank Manager (for ≤₹5L) or a Notary/JMFC (for >₹5L).
Scenario C: Sole Holder / All Joint Holders Deceased – NO Nomination (Most Complex)
This triggers the legal heirship process. Requirements vary drastically by value slab.
1. For Transmission Value ≤ ₹5,00,000:
- Key Docs: Form T3, Death Certificate, Claimant’s KYC/PAN/Bank Proof.
- Supporting Legal Docs:
- A simple, notarized Indemnity Bond (Annexure II) from the legal heir(s) claiming the units.
- Proof of relationship between claimant and deceased.
- No Objection Certificate (NOC – Annexure IV) from other legal heirs (if applicable).
2. For Transmission Value > ₹5,00,000 but ≤ ₹10,00,000:
- Key Docs: As above.
- Supporting Legal Docs (Either/Or):
- Option 1: Notarized copy of the Probated/Registered Will + an Indemnity Bond from the beneficiary.
- Option 2: Legal Heirship Certificate (from Tahsildar/SDM) + Indemnity Bond from the claimant + NOC from all other legal heirs.
3. For Transmission Value > ₹10,00,000:
- Key Docs: As above.
- Supporting Legal Docs (Any One):
- Notarized copy of the Probated Will, OR
- Succession Certificate from a competent court, OR
- Letter of Administration (if no will).
- Note: For these high-value cases, an Indemnity Bond is usually NOT required.
Scenario D: HUF Cases (Karta Deceased)
- For New Karta Appointment: Use Form T4. Need a bank letter attesting the new Karta’s signature (Annexure-I(b)) and an Indemnity Bond from all coparceners (Annexure V).
- For HUF Dissolution: Use Form T5. Requires an Indemnity Bond from the claimant (Annexure VI) and often a court decree/partition deed, especially if value >₹5L or there are disputes.
Part 3: Pro-Tips for Distributors
- Start with Value & Nomination: Always ask: “Was there a nomination?” and “What is the approximate value of the holdings?” This decides the entire path.
- Collect the Universal Docs First: Get the Death Certificate, TRF, claimant’s PAN/KYC, and bank proof in order while the family figures out the legal documents.
- Highlight the ₹5 Lakh & ₹10 Lakh Thresholds: These are critical breakpoints that change the documentary burden significantly. Managing client expectations here is crucial.
- Attestation is Key: Guide clients on who can attest—Notary Public, Gazetted Officer, Bank Manager (for specific forms), or JMFC. Self-attestation is only for the death certificate with original verification.
- AMC Branch Visit is Inevitable: For verification of originals and OSV (One Time Verification) sealing, a visit to the AMC’s office by the claimant is almost always required. Prepare your clients for this.
- Risk Mitigation Doc: Note that an attested copy of the deceased’s ID proof (PAN/Aadhaar) is increasingly required as a risk mitigation measure in non-nomination cases.
Conclusion: While transmission is a procedural process, your role as a distributor is to be a compassionate and informed guide. This ready reckoner helps you map the client’s situation to AMFI’s requirements accurately, reducing back-and-forth and easing a difficult time for your clients. Always refer to the latest AMFI guidelines and specific AMC checklists for any updates.
