India, Dec. 15 -- The Supreme Court has ruled that ownership of financial instruments like shares and debenture certificates should pass to the successor through legal or testamentary means, rather than to the nominee.

In a December 14 judgment, a bench of justices Hrishikesh Roy and Sanjay Karol said being a nominee in a share/debenture certificate doesn't automatically grant inheritance rights. The ownership of these instruments is decided by the deceased's will or succession laws in India, which may include the Hindu Succession Act or the Indian Succession Act, Moneycontrol reported.

The court decision came in a family disagreement, where the father granted shares and debentures to one son in his will. The other son, listed as the no...