On Sunday, the death of billionaire Rakesh Jhunjhunwala at age 62 hit headlines all over the country and left many in shock.
The veteran investor, whose net worth was valued at $5.8 billion by Forbes, was estimated to be the 48th richest person in India.
Which raises the big question – what happens to the $4 billion stock holdings of the man known as ‘the big bull’ and India’s Warren Buffet?
Let’s take a closer look:
What happens after a person’s stocks after he or she passes away?
As per Zee News, after a person’s passing his or her stocks and shares can be passed on to nominees by submitting a death certificate copy attested by a notary/gazetted officer.
The form must be registered to the appropriate custodian such as NSDL or CDSL. If nomination is not registered, the heirs of the deceased must submit either of the following:
Probate of Will
Succession Certificate
Letters of Administration
Speaking to Zee Media, Dharmendra Chachan, partner Chachan and Lath, said, "Nominee is a trustee and not an owner. If there is a will, shares will be dealt with as per the will, otherwise will be distributed amongst the legal heirs as per Hindu Succession Act".
What will happen to Jhunjhunwala’s stock holdings?
As per Economic Times, Jhunjhunwala had made all the arrangements much before his passing.
A person familiar with the matter, speaking on condition of anonymity, told the newspaper he had left his assets - direct holdings in listed and unlisted companies as well as immovable properties - to his wife and three children.
The person added that his estate would be managed by professionals and family members.
Jhunjhunwala had been relinquishing his board positions in most of his investee companies in the last year due to health conditions and other preoccupations, the individual added.
Jhunjhunwala's investment firm Rare Enterprises – coined from the first two letters of his and his wife Rekha's names – will be run by the current management team led by Utpal Sheth and Amit Goela.
In a statement, Rare Enterprises said: True to his (Jhunjhunwala's) nature and unerring eye for detail, he had planned and meticulously executed a smooth transition to sustain and enhance his legacy.
16/08/22 First Post
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