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

A DP receives a nomination form for a demat account from a sole holder who wants to nominate their 15-year-old daughter. Which statement about this nomination is correct?

A minor can be a nominee for a demat account. The account holder must also give the details of a guardian who will act on the minor's behalf if the holder dies while the nominee is still a minor. A spouse's signature is not needed.

  1. AA minor can be nominated, and the holder must name a guardian who will act on behalf of the minor nomineeCorrect
  2. BA minor cannot be nominated under any circumstance
  3. CThe minor can be nominated only if the holder's spouse also signs
  4. DThe nomination is valid only when the minor's guardian is a DP employee

Explanation

A minor may be named as a nominee. The holder must also give the name and details of a guardian who can act for the minor in case the holder dies while the nominee is still a minor. Spouse signature is not a requirement, and a DP employee is not the guardian.

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