NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
An investor holds a folio in single mode. The sole holder dies and the nominee claims the units, whose value is Rs 4,00,000. Which statement is correct about the transmission process?
With a valid nomination, the nominee submits the death certificate, a transmission request and KYC details, and the units are transferred to the nominee's name. A court succession certificate is not required in every case, and the units are not cancelled or paid to the distributor.
- AUnits are transmitted to the nominee on submission of the death certificate and KYC, after which the nominee becomes the holderCorrect
- BUnits are automatically redeemed and paid to the distributor
- CThe AMC must wait for a court succession certificate in every case
- DThe units are cancelled and the amount is transferred to SEBI
Explanation
Where a valid nomination exists, the nominee submits the death certificate, transmission request and KYC and the units are transmitted to the nominee's name. A court succession certificate is not mandatory in every case, and distributors have no claim on the units.
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