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

A demat account is held jointly by Anil, Sunita and Vikram, with Anil as first holder. Anil dies. How is the transmission processed by the DP in the usual case?

The securities are transmitted to the surviving joint holders, and the second holder becomes the first holder. The DP needs the transmission request and a copy of the death certificate. The legal heirs of the deceased do not receive a share.

  1. ASecurities are transmitted to the surviving joint holders, with the second holder becoming the first holder, on submission of the death certificate and requestCorrect
  2. BSecurities are frozen until the legal heirs of Anil obtain a succession certificate from a court
  3. CSecurities are transferred equally to the legal heirs of Anil and the surviving holders
  4. DThe account is closed and the securities are sold in the market by the DP

Explanation

On the death of one joint holder, the surviving holders are recognised as the holders, and the next holder in order becomes the first holder. The DP needs the request and a notarised or attested copy of the death certificate. A succession certificate is not needed for transmission to surviving joint holders, so the second option is wrong.

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