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

Mr. Raman, the sole holder of a demat account with a registered nominee, passes away. What is the usual first step the DP takes for transmission of securities to the nominee?

When a sole holder dies and a nominee is registered, the DP processes transmission on the nominee's request, supported by an attested copy of the death certificate and the nominee's KYC and demat account details. No court succession order is required in this case.

  1. ATransfer the securities to the nominee only after a court succession order is produced
  2. BReceive the nominee's request along with a certified copy of the death certificate and the required KYC and account detailsCorrect
  3. CClose the account immediately and send the securities to the issuer
  4. DTransfer the securities to the legal heir named by the DP

Explanation

Where a nominee exists, transmission to the nominee is simple. The DP takes a request from the nominee with a notarised or attested copy of the death certificate and the nominee's KYC and demat account details. A court order is not needed in such a case, so option A is wrong.

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