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

Ms. Shah, a sole demat account holder, has registered her brother as nominee. She dies. Which statement about the nominee's position is correct in the depository framework?

A registered nominee can have the deceased sole holder's securities transmitted by submitting the prescribed request, a death certificate copy and his own identity and account details. A court succession certificate is not mandatory in every case, rematerialisation is not required, and no short deadline extinguishes the nomination.

  1. AThe nominee can get securities transmitted to his account by submitting the prescribed request with a death certificate copy and his identity detailsCorrect
  2. BThe nominee becomes the owner only after obtaining a court succession certificate in every case
  3. CThe nominee must first rematerialise all securities
  4. DThe nominee's rights end if the DP is not informed within 30 days

Explanation

A registered nominee can claim transmission by providing the required documents such as a notarised or attested death certificate copy and KYC and a demat account to receive securities. A court certificate is not needed in every case where a valid nomination exists. Rematerialisation is not required, and no 30-day cutoff voids the nomination.

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