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

Mr. Iyer held a joint demat account with his wife and son in the order Iyer, wife, son. Mr. Iyer dies. Who is treated as the first holder after transmission, assuming no nominee issue arises for joint holders?

The wife becomes the first holder. When a joint holder dies, the surviving holders continue, the deceased's name is deleted on production of the death certificate, and the next named holder in the original order moves up to first position.

  1. AThe son, being the eldest male member
  2. BThe wife, as the surviving holder next in order, with Mr. Iyer's name deletedCorrect
  3. CA legal heir chosen by the DP
  4. DThe account is frozen permanently until the other holders obtain probate

Explanation

On the death of the first holder in a joint account, the surviving holders continue and the deceased's name is deleted on submission of the death certificate. The next holder in the order becomes the first holder, here the wife. The DP has no discretion to choose another person.

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