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

Which of the following is true about the cancellation or change of a nomination in a demat account?

A demat account holder may cancel or change a nomination whenever desired by submitting the prescribed form to the DP, and the new nomination replaces the earlier one. The previous nominee's consent is not needed, and there is no restriction limiting the change to a single occasion.

  1. AThe holder can cancel or change the nomination at any time by submitting the prescribed form, and the new nomination overrides the earlier oneCorrect
  2. BOnce registered, a nomination cannot be changed
  3. CA change is allowed only with the earlier nominee's consent
  4. DA change is permitted only once in the lifetime of the account

Explanation

A holder is free to cancel or vary a nomination at any time by submitting the prescribed form, witnessed as required, to the DP. The latest valid nomination replaces the earlier one. Consent of the earlier nominee is not needed and there is no limit of one change.

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