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

A sole holder's demat account has no nominee. His son applies for transmission of securities worth a high value. Which approach is most consistent with DP procedure?

With no nominee, the DP must be satisfied that the claimant is the legal heir. It asks for the death certificate plus legal heir evidence, such as a succession certificate, probate or administration letter, or indemnity and no-objection from other heirs, depending on the value involved.

  1. AThe DP transmits on the son's simple oral request
  2. BThe DP asks for documents such as a death certificate and legal heir evidence like a succession certificate, probate, or indemnity as per its requirement based on the valueCorrect
  3. CThe DP transfers the securities to the DP's own account until claimants settle
  4. DThe DP deletes the securities from the account

Explanation

Without a nominee, the DP needs proof that the claimant is the legal heir. Besides the death certificate, the DP asks for documents such as a succession certificate, probate or letter of administration, or an indemnity or no-objection from other heirs, depending on the value. Oral requests cannot be accepted.

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