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

In a single-holder demat account, the holder has registered a nominee. After the holder's death, the nominee approaches the Depository Participant (DP) to have the securities moved to the nominee's own demat account. Which step must the DP complete before initiating the transmission?

When a valid nomination exists, the DP needs the death certificate and the nominee's identity proof, and must verify the nomination on record. Court succession certificates, indemnity from all legal heirs or a waiting period are not required, because the nominee is entitled to receive the holdings directly.

  1. AObtain a copy of the death certificate and verify the nominee's identity and the nomination recordCorrect
  2. BObtain a court-issued succession certificate in every case
  3. CWait for a mandatory six-month notice period to lapse
  4. DObtain an indemnity bond from all legal heirs of the deceased

Explanation

Where a valid nomination exists, the nominee only needs to submit the transmission request with a notarised or attested death certificate and identity proof. The DP verifies the nomination record before processing. A succession certificate and indemnity from all legal heirs are not required when a nominee exists, and no fixed waiting period applies.

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