Skip to content

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

Mr. Iyer and Mrs. Iyer hold a joint demat account with the operating instruction 'either or survivor'. Mr. Iyer dies. How is the account typically dealt with?

For a joint demat account, when one holder dies, the surviving holder submits a copy of the death certificate to the DP, and the account continues in the survivor's name. Securities are not sold or frozen awaiting probate, because transmission to the survivor is the standard process.

  1. AThe account is frozen until probate is obtained for the entire holding
  2. BThe securities are sold by the DP and proceeds paid to the legal heirs
  3. CThe surviving holder is treated as the sole holder after submitting the death certificate, and the securities continue in the account in that nameCorrect
  4. DThe account is closed and the securities are returned to the issuer

Explanation

In joint accounts, transmission to the surviving holder(s) is done on production of a death certificate of the deceased holder. The account is then treated as held by the survivor, with no sale or issuer return involved.

Did you get it right without looking?

One question tells you little. A timed set on Functions of Depository Participant - Transmission and Nomination shows your real accuracy, how long you take and where you lose marks.

Practise Functions of Depository Participant - Transmission and NominationFree diagnostic mock

More Functions of Depository Participant - Transmission and Nomination questions