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

Mrs. Iyer, a sole holder with a registered nominee, has died. The nominee approaches the DP to claim the securities. Which is the most appropriate step for the DP?

The DP should take the nominee's transmission request along with the death certificate and the nominee's KYC, and credit the securities to the nominee's own demat account. A succession certificate is not mandatory when a valid nominee exists, and unrelated family members have no claim by default.

  1. AObtain a request with a copy of the death certificate and the nominee's KYC, and an account opened by the nominee for transferCorrect
  2. BInsist on a court succession certificate in every case
  3. CTransfer securities to any family member who asks
  4. DWait for the issuer company to approve the transmission

Explanation

Where a valid nominee exists, the DP processes transmission on the nominee's request supported by a notarised or attested death certificate and KYC, crediting a demat account of the nominee. A court order is not needed in every case. The DP does not transfer to arbitrary relatives, and issuer approval is not needed.

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