NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
Mr. Iyer holds units in a folio jointly with his wife under the mode of holding 'Anyone or Survivor'. If Mr. Iyer dies, what is the usual position regarding the units?
With joint holding, when one holder dies the units are transmitted to the surviving joint holder after submitting the death certificate and a transmission request to the AMC. A succession certificate is not needed in this situation, and units are not paid only to the nominee or moved to any fund.
- AUnits are frozen until legal heirs obtain a succession certificate
- BUnits are redeemed automatically and paid to Mr. Iyer's nominee only
- CUnits are transmitted to the surviving joint holder, who submits a death certificate and request to the AMCCorrect
- DUnits are transferred to the AMC's investor education fund
Explanation
In joint holding, on death of one holder the surviving holder(s) are recognised as the owner(s) of the units, on submission of the death certificate and a transmission request. Succession certificates are needed mainly when there is no surviving holder and no nominee. Units are never moved to an investor education fund automatically.
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