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

A DP receives a request from a nominee for transmission after the sole holder's death. Which of the following is the correct step before processing?

The DP should verify the death certificate along with the nominee's identity and KYC documents and the request form before processing. There is no compulsory waiting period, and securities can only be credited to the claimant's demat account, never to a bank account.

  1. AAccept a photocopy of the death certificate without any verification
  2. BVerify the death certificate and nominee's identity and KYC documents, and then process the transmissionCorrect
  3. CAsk the nominee to wait for 12 months
  4. DTransfer securities directly to the nominee's bank account

Explanation

The DP must verify the original or properly attested death certificate, the nominee's KYC and the request form before transmission. There is no mandatory waiting period. Securities move only to a demat account of the claimant, not to a bank account.

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