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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 Ramesh, Suresh and Mahesh, and Ramesh (the first holder) dies. For transmission of the holdings, the account will generally be dealt with as follows:

The holdings are transmitted to the surviving joint holders, with the account continuing in their names, once the DP receives a transmission request along with the death certificate. Legal heirs or nominees of the deceased joint holder do not take precedence over the survivors.

  1. AThe account is frozen until legal heirs of Ramesh obtain a succession certificate
  2. BThe securities are transmitted to the surviving holders, and the account continues in their names on production of the death certificate and requestCorrect
  3. CThe securities are transferred to the nominee of Ramesh, ignoring the surviving holders
  4. DThe account is closed and securities are sold by the DP

Explanation

In a joint account, on death of a holder the securities are transmitted to the surviving joint holders on the DP receiving a request with a notarised or attested copy of the death certificate. Legal heirs of the deceased do not get priority over survivors, and the DP does not sell the securities.

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