Transmission of liability and related aspects

[Kathryn Courtney]

In the event of the death of the shareholder(s) involved in commodity trade, the participant of the deceased account holder will be able to process the transmission request and it is not necessary to approach the company’s registrar or transfer agent (R & T agent). The claimant must have a depository account to proceed with the transmission request and is required to submit the ‘Transmission Request Form (TRF)’, supported by valid documents. Almost all commodity trading companies allow the profits generated by a trader to be claimed by their dependents in the event of the demise of an active trader.

The regulatory authority will have to arrange the transfer of the commodities to the account of the claimant, after satisfying itself that the application is that of the rightful claimant. The principal advantage of holding dematerialized securities is that the claimant is not required to submit a request for transmission to the R & T agent of each company. The commodities held in the accounts maintained with a depository participant can be transferred with a single request. However, the claimant will have to approach all the depository participants with whom the deceased maintained an account.

In the event of the death of one of the account holders, especially when a joint account is in operation, the account will devolve in the name of the surviving account holder(s).
• In the event of the death of one of the holders of a joint depository account, the surviving account holders can request the depository participant to transmit the account balance to their account along with a duly notarized copy of the death certificate
• The depository participant transfers the balances after verifying:
o The authenticity of the death certificate
o The signatures of the surviving account holders
• The account is closed after transferring the balance