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

Ms. Rao names her brother as nominee for her demat account. Which of the following is true when she dies and the nominee claims the securities?

The nominee can claim the securities by submitting the death certificate and identity documents with a request form, and the DP then transfers the securities to the nominee's demat account. A probate or succession certificate is not needed, and no waiting period applies.

  1. AThe nominee must first obtain a probate
  2. BThe nominee can claim by submitting the death certificate and identification documents, and the DP transfers the securities to the nominee's demat accountCorrect
  3. CThe nominee must wait three years
  4. DThe securities automatically become the property of the DP

Explanation

A nominee's claim is processed more simply, without needing a probate or succession certificate. The nominee provides a death certificate copy, a request form and KYC details, and needs a demat account to receive the securities. No waiting period applies.

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