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

Mr. Raman Iyer holds a joint demat account with his wife Latha, with the operation mode 'Either or Survivor'. Raman dies. Latha, the surviving holder, requests transmission of the holdings into her sole name. How is the transmission treated?

The securities are transmitted to the surviving joint holder, Latha, when she submits the death certificate of Raman. The account then continues in her sole name. Neither legal heirs' consent nor a court succession certificate is needed, because the survivor already has title to the holdings.

  1. ASecurities are transmitted to Latha as the surviving holder on submission of the death certificate of Raman, and the account becomes a single-holder accountCorrect
  2. BSecurities are frozen until Raman's legal heirs give consent
  3. CSecurities are transferred to Raman's nominee, not Latha
  4. DA succession certificate from a court is compulsory before any change

Explanation

In a joint account the surviving holder(s) is entitled to the securities, so transmission is made in the survivor's favour on production of the death certificate of the deceased holder. Nominee or legal heir consent is not needed to recognise the survivor's title. The account is then converted into a single-holder account in Latha's name.

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