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

Mrs. Kapoor wants to appoint a nominee for her individual demat account. Which statement about nomination is correct?

Nomination is available only to individuals; non-individual holders such as companies, trusts or societies cannot nominate. An individual can also change or cancel the nomination later, and a minor may be named as nominee with a guardian, so the other statements are incorrect.

  1. AA nominee can be appointed only by a joint holder
  2. BNomination can be made only by an individual holding on their own behalf or on a sole basis, and not by a non-individualCorrect
  3. CA minor can be nominee only if the nominator is also a minor
  4. DNomination cannot be changed once made

Explanation

Only individuals can nominate, and they must hold the securities singly or jointly as individuals. Non-individuals such as companies, trusts and societies cannot nominate. Nomination can be cancelled or changed at any time, and a minor can be a nominee through a guardian.

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