Legal ownership of joint DEMAT account containing equity shares
"A" and "B" are husband and wife and have two sons "C" and "D"
"A" had a joint demat account with his wife "B".
"A" dies without leaving a will. The contents of the demat account are transmitted by the bank to "B".
"C" claims that under the Hindu Succession Act, he is a legal heir and is entitled to 1/3rd of the demat account contents.
Question: What is the legal right of "C"
1) 0% - Since B is the Joint Holder.
2) 1/3rd - Since C is the legal heir.
3) 1/6th - Since B was always the absolute owner of 1/2 of the contents of the demat accounts, only "A" portion will be split between the legal heirs.
Asked 3 years ago in Family Law from Kolkata, West Bengal
1. C has 1/3rd share of A , not whle of account but of half share of A as A being the joint holder of a/c with B , A and B have the half share divided between them.
So in other words C is the 1/6th share holder of the whole a/c as you have rightly pointed out in your point number 3.
While the mother who is a joint holder is alive C can stake claim as legal heir only of 1/6th share of the entire account as that would be his rightful share.Therefore option 3 is the right answer.
1)Transmission refers to the transfer of securities from the demat account of a deceased holder to that of the surviving joint holder(s), nominee or legal heir. On the death of a joint holder of a demat account, the surviving holder or holders become entitled to the securities.
2) Even as per the applicable provisions of the National Securities Depository Ltd (NSDL) bye-laws, in the event of the death of a joint holder of a demat account, NSDL will recognize the surviving holder(s) as having title to the security balances lying to the credit of that account
3) C will not be entitled to 1/3rd share as claimed of demat account contents
In your case, on death of the Joint demat holder, the surviving holder becomes entitled to the entire securities. As claimed, C will not be entitled to claim 1/3rd share since the surviving holder is still alive. Hence, all he can claim is the 1/6th share.
Hi, as the one of the joint holder died surviving holder will entitled for the entire securities and "C" has no right to claim any rights.
1. The share will be trnsmitted in the name of B being the joint holder. after the demise of A,
3. However, 'C' can claim 1/6th of the total nos. of the shares i.e. his sahre of A's 50% share of the total joint stock holding.
survivor of joint demat a/c holder is recognised as entitled person by nsdl.
1. ''C'' has a 1/3rd share in the securities held by 'A' i.e his father as the latter died without making a will. Statement 3 approximates to the correct legal position, albeit it is not entirely correct. If 'B' is still alive the share of 'C' cannot be worked out on the basis of the entire demat account.
2. Transmission does not oust or create a legal right.
the son C get only 1/6th share.
Advocate, New Delhi
B is the owner of that dmat account because it was joint account. investment in shares is the self acquired property of A. but it does not means that whole property was invested by A. first confirm shares of A & B in that demat account. if B's investment was her own property then heir of A can't claim in respect of that property . if all investment belonged to A then B has only life interest in that property except 1/3 of her share. remaining properties shall be divided in heirs in equal shares.