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

A DP receives a transmission request for the demat account of a deceased sole holder who made no nomination. The legal heir submits the request. Which statement best describes the DP's treatment?

The DP can process transmission for a legal heir even without a nominee, based on the death certificate and the prescribed proof of legal heirship, with the documentary requirements varying by the value of holdings. Refusal or forced rematerialisation is not required.

  1. AThe DP may process transmission on documents such as the death certificate, and the legal-heir proof prescribed by the depository, with value-based requirements for the evidenceCorrect
  2. BThe DP must refuse because only nominees can claim
  3. CThe DP should credit the securities to the holder's own account after the holder's name is deleted
  4. DThe DP should send the securities for rematerialisation before transmission

Explanation

Absence of a nominee does not block transmission; the legal heir can claim with the death certificate and proof of legal heirship, such as a succession certificate, probate or indemnity and affidavits depending on value limits. Refusal would be wrong. Rematerialisation is not a prerequisite.

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