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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Transmission and Nomination

A client wants to add a nominee to his existing individual demat account. Which is the usual procedure?

The client submits the prescribed nomination form, duly signed and witnessed as required, to the DP, which then records the nominee details in the account. No court order, issuer approval or new account is needed to add a nominee later.

  1. ASubmit a nomination form signed by the holder and witnessed as required, to the DP, which records it in the systemCorrect
  2. BObtain a court order before nomination can be recorded
  3. CAsk the issuer company to register the nominee in its books
  4. DOpen a new demat account since nomination cannot be added later

Explanation

A holder can add or modify nomination at any time by submitting the prescribed nomination form to the DP, which records the details in its records. No court order or issuer registration is needed and a new account is unnecessary.

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