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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening

Ms. Deepa Rao opens a demat account and wants to nominate her brother. Which statement about nomination at account opening is correct?

An individual account holder can either nominate someone at the time of opening the demat account or explicitly opt out, and the choice is recorded then. A nominee need not be a minor, and the facility is not restricted to companies or to post-transaction timing.

  1. AThe account holder may opt to nominate or opt out, and the choice is recorded at account openingCorrect
  2. BNomination is compulsory only for corporate accounts
  3. CA nominee must always be a minor
  4. DNomination can be made only after the first transaction

Explanation

Nomination is available to individual holders and may be made at account opening; the investor can also choose to opt out by making an explicit declaration. A nominee need not be a minor, and nomination is not limited to corporates or delayed until a transaction.

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