SEBI's new rule will make transferring securities to legal heirs easier
SEBI just announced a big update for anyone inheriting stocks or mutual funds.
Starting January 1, 2026, transferring securities from a nominee to a legal heir will be much simpler and less confusing—especially when it comes to taxes.
The new system introduces a standard "TLH" code for these transfers, so tax exemptions are applied correctly and everyone knows what's happening.
Nominees often faced surprise capital gains tax hassles
Until now, nominees often faced surprise capital gains tax hassles—even though they were supposed to be exempt.
SEBI worked with the tax department and gathered public feedback (from an August 12 consultation paper) before rolling out these changes.
The goal? To make the whole process smoother and stress-free for families dealing with inheritances, without changing any of the usual SEBI rules.