Explained: What happens to Rakesh Jhunjhunwala's $4 billion stockholdings?

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 48^th 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:

1. Probate of Will
2. Succession Certificate
3. 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.Berjis Desai, former managing partner of law firm J Sagar Associates, who assisted Jhunjhunwala in the process, said “everything has indeed been planned meticulously”.The value of his listed holdings was around ₹29,700 crore on 12 August with Titan being the most valued, as per Economic Times.As per Bloomberg, jewellery retailer Titan Co. was one of the largest and most profitable investments for the veteran trader and his wife Rekha Jhunjhunwala, comprising more than a third of their portfolio.Star Health & Allied Insurance Co., footwear maker Metro Brands Ltd. and automaker Tata Motors Ltd are some of their other sizeable investments. Jhunjhunwala held a stake of over 10 per cent in Star Health, IT firm Aptech Ltd. and videogame maker Nazara Technologies Ltd, as per the reportJhunjhunwala died of a sudden cardiac arrest on Sunday.He made his debut in the Indian stock market in 1985 while he was still in college and had just pumped in Rs 5,000. By September 2018, his capital rose to a whooping Rs 11,000 crore.When he made his first investment, the Bombay Stock Exchange's benchmark index Sensex was at 150 and now it trades around 60,000 points.[caption id="attachment_10831231" align="alignnone" width="640"] Representational image[/caption]It was in 1986, when Jhunjhunwala earned his first big profit when he bought 5,000 shares of Tata Tea at Rs 43 and the stock price increased to Rs 143 in just three months. In three years, he made Rs 20-25 lakh.

Jhunjhunwala was always bullish about India's stock market.

Also, whatever stocks he purchased mostly turned into a multi-bagger.He recently teamed up with ex-Jet Airways CEO Vinay Dube and former IndiGo head Aditya Ghosh to launch Akasa Air -- India's newest budget carrier. The airline began commercial operations on 7 August with its maiden flight from Mumbai to Ahmedabad.Prime Minister Narendra Modi, who met Jhunjhunwala and his wife Rekha Jhunjhunwala last year, described him as indomitable, full of life, witty and insightful."He leaves behind an indelible contribution to the financial world. He was also very passionate about India's progress. His passing away is saddening. My condolences to his family and admirers. Om Shanti," PM Modi tweeted as he condoled the demise of the billionaire.With inputs from agenciesRead all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.