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

Ms. Kavita opened a demat account and did not make a nomination. She later wishes to nominate her brother. Which statement about nomination in a demat account is correct?

She can nominate her brother at any time during the life of the account by submitting the prescribed nomination form to the DP. Nominations can be made, changed or cancelled later, and are not restricted to account opening, wills or joint accounts.

  1. AShe can make or change a nomination at any time during the life of the account by submitting the prescribed form to the DPCorrect
  2. BA nomination can be made only at the time of opening the account and can never be changed
  3. CA nomination can be made only by a will registered with the depository
  4. DNomination is allowed only for joint accounts

Explanation

A holder may make, cancel or change a nomination at any time by submitting the prescribed form to the DP, with witness requirements as applicable. It is not limited to account opening, does not require a registered will, and is not restricted to joint accounts.

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