NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Transmission and Nomination
Which statement about nomination in a demat account is correct?
The holder may appoint or change a nominee, and in joint accounts all holders must make the nomination together. The nominee gets no rights during the holder's lifetime and becomes entitled only after the holder's death, subject to the applicable rules and exchange control provisions.
- AA nominee can be appointed or changed by the holder, and for joint accounts the nomination is made by all holders jointlyCorrect
- BA nominee acquires ownership of the securities during the lifetime of the holder
- CA non-resident cannot ever be a nominee
- DNomination can be made only by a sole holder
Explanation
Nomination is a facility available to individual holders, including jointly held accounts where all holders together nominate, and it can be changed at any time. The nominee has rights only after the holder's death, not during their lifetime. Non-residents can be nominees subject to exchange control rules.
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