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

Ms. Rao, an individual demat account holder, wants to appoint her husband as nominee. Which of the following is correct regarding nomination in a demat account?

Individual account holders can appoint a nominee, and they may later change or cancel that nomination by following the prescribed procedure. Non-individual entities such as companies or trusts cannot nominate, and nomination is not irrevocable or limited to minors.

  1. ANomination can be made only by a minor holder
  2. BA nominee can be appointed by individual holders, and nomination can be cancelled or changed by the holder laterCorrect
  3. CNomination once made can never be changed
  4. DA non-individual such as a company can nominate any person

Explanation

Only individuals can nominate, and the holder can vary or cancel the nomination later by following the prescribed procedure. Non-individuals such as companies, trusts and societies cannot nominate. A minor's account is not the sole eligible category, and nomination is not irrevocable.

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