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

Mr. Iyer wants to nominate his minor granddaughter as nominee in his demat account. Which statement is correct?

A minor can be nominated provided the holder also names a guardian to act for the minor. The guardian can claim the securities if the holder dies while the nominee is still a minor. Nomination is not limited to joint accounts or to children.

  1. AA minor cannot be appointed as a nominee under any circumstances
  2. BA minor can be nominated, but the account holder must also name a guardian to act on the minor's behalfCorrect
  3. CA minor can be nominated only if the account is a joint account
  4. DA minor can be nominated only if she is a daughter of the holder

Explanation

A minor can be a nominee, and the holder must appoint a guardian who can claim the securities on the minor's behalf if the holder dies during the minority. Nomination is not restricted to joint accounts or to children of the holder.

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