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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services

Mr. Sharma invested in a scheme through a systematic transfer arrangement. His folio is held jointly with Mrs. Sharma with the holding pattern 'Anyone or Survivor'. Mr. Sharma dies. Which statement is correct about the units?

With an 'Anyone or Survivor' joint holding, the units pass to the surviving holder on submission of the death certificate and required documents. The nominee becomes relevant only when all holders have died, so redemption or a court order is not needed.

  1. AUnits are transmitted to the surviving holder, who becomes the sole holder, on submission of the death certificateCorrect
  2. BUnits must be redeemed immediately and paid to Mr. Sharma's legal heirs
  3. CThe folio is frozen until a court order is obtained
  4. DThe units are transmitted to the nominee even though a joint holder survives

Explanation

In a joint folio, on the death of one holder, units are transmitted to the surviving holder(s) on submission of the death certificate and required documents, in order of holding. The nominee comes into play only when all joint holders have died. Immediate redemption or a court order is not required.

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