Transmission of Units of investment : Paper Work By CA Sayan Ghosh


Investment of a Hindu Undivided Family ( HUF) are managed by the Karta. KYC details of the Karta are also furnished at the time of making investments along with details of the HUF. In case of death of the Karta, the senior most surviving member of the HUF becomes the Karta. The new Karta needs to make sure that the transmission of units takes place by carrying out the following formalities.

Letter for change of Karta

  • A letter is required from the new Karta stating the reason for change of Karta in mutual fund records. The respective AMC may have a specific form. Name of the deceased Karta, folio number, scheme, unit details may be mentioned in the letter signed by the new Karta.

Documents required

KYC documents of the new Karta and the HUF need to be provided. If the HUF is already KYC complaint, the HUF KYC need not be furnished. Along with the letter and KYC documents, the following must be enclosed:

  • Attested copy of death certificate.
  • Bank certificate stating signature and details of new Karta.
  • Indemnity bond signed by all co-parceners and new Karta.

Additional documentation requirements

If there is no surviving co-parcener, or the transmission amount is Rs.2 lakh or more, or there is any objection from any surviving HUF member, any of the following additional documents are mandatory in addition to the above:

  • Copy of settlement deed.
  • Copy of the deed of partition.
  • Copy of decree of relevant competent court.

Verification Procedure

Transmission form and documents submitted by the new Karta/members are scrutinized and verified by the AMC/registrar and if found in order, transmission and changes in the records are carried out.

Special Points to remember

  • A new bank mandate ( attested by the bank manager) along with copy of a cheque may also be required.
  • If the senior most member after death of the Karta is a daughter, she will become Karta of the HUF.
  • FATCA/ CRS details also need to be furnished at the time of making the changes.

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