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

A sole holder of a demat account dies without a nominee, and the legal heir applies for transmission of securities worth Rs 4 lakh. Which approach by the DP is consistent with the process for such cases?

The DP should process transmission after collecting the death certificate, the legal heir's identity documents and the supporting papers required for that value, such as indemnity or succession proof. Absence of a nominee does not bar transmission; it only means more documentation.

  1. AReject the request because transmission without nomination is not permitted
  2. BProcess transmission after obtaining the death certificate and documents such as the legal heir's proof and any indemnity or other papers prescribed for the value involvedCorrect
  3. CTransfer securities to the DP's own account until the heir attains age 60
  4. DCredit securities to the stock exchange's settlement guarantee fund

Explanation

Transmission is possible without nomination. The DP collects the death certificate, the heir's KYC and the supporting documents required for the value involved, such as succession proof or indemnity or affidavit as applicable, before transferring securities to the heir's account.

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