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

An investor holds a demat account with two DPs, and wants to cancel a nomination registered earlier on the account with DP-1, where she is the sole holder. Which statement is correct?

A sole holder may cancel or change a nomination by submitting the prescribed form to the DP holding that account. The nominee's consent is not required, and the change applies only to that account, so nominations at another DP remain unaffected.

  1. ACancellation requires the nominee's written consent
  2. BNomination, once registered, can never be cancelled, only changed by a court
  3. CShe may cancel or change the nomination by submitting the prescribed form, witnessed as required, to DP-1 for that account, and it does not affect the account with DP-2Correct
  4. DCancelling at DP-1 automatically cancels the nomination at DP-2

Explanation

Nomination is account-specific. The holder can cancel or vary it with the prescribed form to the DP where the account is held, and the nominee's consent is not needed. The account with DP-2 has its own nomination record, so it is unaffected.

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