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

A DP receives a transmission request from the legal heir of a deceased sole holder who had not registered a nominee. The value of securities is small. Which approach reflects the usual DP practice?

Transmission is still possible without a nominee. The DP takes the death certificate, the claimant's demat details and KYC, and, depending on the value of holdings, additional proof such as indemnity or legal-heir documents, before moving the securities to the claimant's account.

  1. ATransfer the securities after taking documents such as a death certificate, claimant's KYC and, depending on value, an indemnity or other legal-heir proofCorrect
  2. BReject the request because transmission is possible only with a nominee
  3. CTransfer securities to any family member who calls the DP
  4. DWait three years before processing any request

Explanation

Absence of a nominee does not bar transmission. The DP asks for death certificate, claimant's account details and, based on value thresholds, legal-heir evidence or indemnity before effecting transmission.

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