How to Transfer a Deceased Person's Stock Holdings to Heirs

A capital-market lawyer has explained how the stock holdings of a deceased shareholder are transferred to their heirs, emphasising that selling a deceased person's shares after death without the knowledge of the other heirs constitutes a criminal offence.

Steps After Obtaining the Certificate of Inheritance

After a shareholder's death, once the death certificate has been issued and burial has taken place, the heirs can file a petition for a certificate of inheritance (انحصار وراثت) at the dispute-resolution council of the deceased's last place of residence. With that certificate, heirs can then approach the Central Securities Depository of Iran (CSDI) to receive their share of the deceased's stock.

Important: the brokerage that originally issued the deceased's trading code plays no role in this process. All petitions are filed electronically through Iran's Electronic Judicial Services office.

Voluntary-Transfer of Shares (Inheritance in Kind)

Many people assume the deceased's shares must be sold. This is not the case. The CSDI allows involuntary transfer (انتقال قهری) — the shares are divided and transferred directly to each heir who holds a trading code, without requiring a sale. One heir may attend the CSDI on behalf of all heirs under a power of attorney. If heirs are in dispute, they must obtain a court ruling on the certificate of inheritance before approaching the CSDI.

Criminal Liability for Selling Shares Before the Inheritance Process

Once the inheritance process is complete, the deceased's trading code is cancelled. In some cases a shareholder shares their login credentials with a family member before death, and after death that person sells the shares to avoid the formal process — since the trading code is not automatically cancelled at the moment of death.

However, selling a deceased person's shares after death — whether in good faith or not — constitutes the criminal offence of selling another person's property (فروش مال غیر). The other heirs have the right to file a criminal complaint against the person who did so.

If you encounter difficulties during the share-transfer process, contact Alemohammad Law Office for professional legal advice.