NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Transmission and Nomination
Mr. Iyer, the sole holder of a demat account, has died. His son wants the securities moved to his own demat account. Which step is the DP required to follow first for transmission?
The DP must first get a transmission request form from the claimant along with the death certificate and other supporting documents, verify them, and only then process the transfer. A verbal request is not enough, because transmission needs documentary evidence of the holder's death and the claimant's entitlement.
- ATransfer the securities immediately on a verbal request from the son
- BObtain a transmission request form with the death certificate and supporting documents from the claimantCorrect
- CClose the account and send share certificates to the son
- DWait for the company to issue fresh certificates in the son's name
Explanation
Transmission in a demat account is processed only on a written request from the claimant accompanied by a copy of the death certificate and other documents. The DP verifies these against originals before processing. A verbal request is insufficient, and the securities remain in dematerialised form throughout.
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