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

An investor holds units in a folio under 'anyone or survivor' mode of holding with two joint holders. One joint holder dies. Which statement is correct?

The surviving holder can continue the folio and redeem units after producing the death certificate of the deceased joint holder. In the 'anyone or survivor' mode the survivor becomes the sole owner, so no freezing, forced redemption or automatic nominee entry occurs.

  1. AThe surviving holder can continue the folio and redeem units after submitting the death certificate of the deceased holderCorrect
  2. BThe folio is frozen until legal heirs of both holders apply
  3. CThe units must be redeemed immediately at the NAV of the date of death
  4. DThe nominee of the deceased holder automatically becomes a joint holder

Explanation

Under 'anyone or survivor', the surviving holder becomes the sole owner after the death of the other holder is intimated with a death certificate. The folio is not frozen and there is no forced redemption. A deceased holder's nominee does not become a joint holder while a surviving holder exists.

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