Transfer and Conversion of shares
Is it legal to continue trading in a deceased person's ATS account?
No, it is not legal to continue trading in a deceased person’s ATS account. The nominee or legal heirs of the account holder are entitled to the securities and funds in an account. They can transfer funds and securities in their bank and demat account after submitting the required documents and then can start trading from their account. See,
POINT TO BE NOTED
• Carrying out the transaction in a deceased person’s account amount to impersonification and may invite penalties or criminal charges or both under Indian Law.
• This restriction applies to all kinds of transactions, whether it is on-market transactions or off-market transactions.