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

Mr. Iyer, sole holder of a demat account, has died. His daughter, who is the registered nominee, approaches the DP to claim the securities. Which is the correct approach for the DP?

The DP should process the claim on the nominee's request, taking the death certificate and the nominee's KYC and demat account details. Because a valid nomination exists, a succession certificate is not required. Insisting on rematerialisation or refusing the claim would be incorrect.

  1. ATransfer the securities only after a succession certificate is produced in every case
  2. BProcess the claim on the nominee's request with a copy of the death certificate and required KYC, as per the DP's procedureCorrect
  3. CAsk the nominee to rematerialise all securities first
  4. DFreeze the account permanently and refuse the claim

Explanation

Where a valid nomination exists, the DP can transmit securities to the nominee on production of a notarised or attested death certificate and the nominee's account details and KYC, without insisting on probate or succession certificate. The other options add requirements not needed or refuse a valid claim.

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