Enhancement in transmission processing by introducing PAN validations

Central Depository Services (India) Limited (CDSL), vide Communiqué No. CDSL/OPS/DP/POLCY/2026/504 dated 27 July 2026, has announced an important update regarding Enhancement in transmission processing by introducing PAN validations.

Key Details of the Update –
• CDSL has enhanced its transmission processing system by introducing PAN validations for transmission requests arising due to the death of a beneficial owner(s) to ensure securities are transmitted to the rightful survivors.
• Applicability: All Depository Participants (DPs) processing intra-depository transmission requests under the Transfer–Transmission Module for the following reasons: Transmission to Surviving Holder(s) (TS), Transmission to Nominee(s) (TN), and Transmission to Legal Heir(s) (TC).
• For Transmission to Surviving Holder(s), the system will validate the PAN of the target account holder(s) against the PAN(s) of the surviving holder(s) in the source account. Matching PANs will allow processing, while mismatches will result in rejection of the transmission request.
• For Transmission to Nominee(s), the system will validate the PAN of the target account holder against the nominee PAN recorded in the source account. If the nominee PAN is unavailable in the source account, PAN validation will not be performed; however, DPs must exercise due diligence to ensure securities are transferred only to the recorded nominee account(s).
• DPs must ensure that securities are transferred to nominee account(s) in the proportion specified in the nomination form or, where applicable, equally among the nominees.
• For Transmission to Legal Heir(s), DPs must ensure that the transmission is processed only in favour of the correct legal heir(s).
• Before processing any transmission request through the CDAS system, it is mandatory to capture the Date of Death and Death Intimation Date of the deceased holder in the BO demat account through the BO Modify Module. The system will permit transmission processing only after these details have been captured.
• Effective Date: The system validations are scheduled to be released in CDSL systems on 31 July 2026 (EOD).
• Key Changes: Introduction of PAN-based system validations for transmission requests and mandatory capture of the deceased holder's Date of Death and Death Intimation Date before transmission processing.
• Penalty/Consequence: Transmission requests with PAN mismatches for surviving holder cases will be rejected. Additionally, the system will not permit processing unless the mandatory deceased holder details have been captured.

Actions if Any –
• Ensure back-office systems are updated to accommodate the new PAN validation requirements before the system release.
• Capture the deceased holder's Date of Death and Death Intimation Date in the BO Modify Module before initiating any transmission request through CDAS.
• Exercise due diligence while processing nominee and legal heir transmission requests and ensure compliance with the prescribed validation requirements.

Compliance Deadline –
• Incorporate the necessary modifications in back-office systems on or before 31 July 2026 (EOD), when the new system validations are scheduled to be released.