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

Mrs. Kavita Rao, sole holder of a demat account, has died. Her son, who is the registered nominee, approaches the DP for transmission. Which statement is correct?

The DP can transmit the securities directly to the registered nominee after receiving the transmission request, the death certificate and the nominee's identity, KYC and demat account details. A court probate is not normally required when a valid nomination exists.

  1. AThe DP can transmit securities to the nominee on receipt of the request, proof of death and the nominee's identity/KYC detailsCorrect
  2. BThe DP must always insist on a court probate before any transmission
  3. COnly the issuer company can process the transmission, not the DP
  4. DThe nominee can receive securities only after a 5-year waiting period

Explanation

Where a nominee is registered in a sole-holder account, the DP transmits securities to the nominee on receiving the transmission request, death certificate and the nominee's KYC and demat account details. Probate is not mandatory for a nominee, and no fixed waiting period applies.

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