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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services

A unitholder in a folio with joint holders A, B and C has the mode of holding 'anyone or survivor'. A dies. What is the correct position regarding the units?

The surviving joint holders continue to hold the units, and the deceased holder's name is deleted once the death certificate is submitted. Neither the nominee nor legal heirs of the deceased take priority over surviving holders, and the folio is not frozen or closed.

  1. AThe units are frozen until legal heirs obtain a succession certificate
  2. BThe surviving holders continue to hold the units, and the deceased's name is removed after submission of the death certificateCorrect
  3. CThe units are redeemed and paid to A's nominee only
  4. DThe folio is closed and units are transferred to the AMC

Explanation

In a joint folio, on the death of a holder the surviving holders are recognised as the unitholders, following submission of the death certificate. The nominee or legal heirs of the deceased do not take priority over surviving joint holders.

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