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

A demat account holder wishes to cancel an existing nomination and have no nominee at all. Which is the correct procedure?

To remove a nomination and opt out, the account holders must submit a signed declaration to the DP, with all joint holders signing. Verbal requests are not valid, cancellation is allowed, and the nominee's signature is not required because the nominee has no right while the holders are alive.

  1. ASubmit a nomination opt-out declaration to the DP, duly signed by all holdersCorrect
  2. BThe DP can cancel it on a verbal request from any one holder
  3. CCancellation is not permitted once a nominee is registered
  4. DThe nominee must sign the cancellation form

Explanation

Nomination can be cancelled or changed by the account holders, and opting out is done through a declaration signed by all holders. Verbal requests are not valid, cancellation is permitted, and the nominee's consent is not required because the nominee has no vested right during the holders' lifetime.

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