Conversion of CDS account into a Deceased Account
The CDS requires a letter from the Participant together with a copy of the certificate of death issued by District Registrar/Additional District Registrar or Registrar in accordance with the Births and Deaths Registration Act (Cap 110) or a letter of administration or probate duly certified by a Participant.
Upon a receipt of notification of a death of an account holder by a Participant to the CDS, the CDS will change the account title as follows.
In the event the death certificate is given the account title will be indicated as “Deceased – name of account holder”
In the letter of administration or probate is submitted the account title will be indicated as the “Estate of Late ......Name of account holder”
In both instances trading will be suspended on the account.
Transmission of Shares
The duly completed CDS Form 19 to be submitted to the CDS for confirmation of CDS balance through the registered participant.
The CDS will confirm the balance on the CDS form 19.
The completed CDS form 19 and supporting documents should be submitted to the relevant Company Secretary by the relevant heirs or Participant
The Company Secretary will approve the Form 19 and return the same to the Participant.
The relevant stamp duty should be paid by the legal heirs to the Department of Inland Revenue.
Thereafter the approved CDS Form 19 should be submitted to the CDS together with the stamp duty paid receipt, other supporting legal documents and the CDS form 6, duly signed by the executor / legal heirs.
If the shares are in Locked account a separate CDS 19 form should be forwarded to the CDS for balance confirmation. And CDS 6A form should be used to transfer the Locked shares.
Sale of Securities
If the administrator/executor of the estate of the deceased account holder wishes to sell the securities in the CDS account of the estate prior to conveying same to the legal heirs of the deceased, the administrator/executor of the estate should submit the required documents to the CDS.
Upon submission of the relevant documents, the CDS will remove the trading suspension of the relevant account.
Copy of the letter of administration/probate and last will
An affidavit from the administrator/executor
An affidavit from the legal heirs consenting to such sale
List of securities to be sold
Securities held outside the CDS
Option 1 - To obtain a new securities certificate in the name of legal heirs the administrator/ executor of the estate of the deceased account holder has to submit the relevant documents to the Company Secretary.
Option 2 - If the court has granted permission to sell securities in the secondary market and credit the proceeds to a deceased estate account
Opening of Account
By submitting letters of administration /probate together with duly completed CDS account opening forms signed by the Executors /administrator. All documentation relevant for an individual account will apply.
Deposit of Securities Certificate
By submitting the relevant securities certificate/s of the deceased person along with the CDS Form 3 or 4, signed by the executor /administrator and a copy of the letter of administration/probate registered with the relevant Company Secretary/Registrar
Once the sale of shares are completed this should be notified in writing to the CDS by the Participant instructing the CDS to suspend the deceased estate account.
In the event of a death of a joint holder pertaining to a joint CDS account, a copy of the Register of Deaths issued by District Registrar/Additional District Registrar or Registrar in accordance with the Births and deaths Registration Act (Cap 110) and a letter signed by the surviving holder/s requesting the transfer of securities should be submitted to the CDS along with the CDS Form 6.
Nominations are currently handled by the relevant company secretaries/registrars external to the CDS.