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

Which statement about nomination in a demat account of an individual is correct?

An individual demat holder can appoint a nominee or explicitly opt out through a declaration. Non-individual entities cannot nominate, and a nominee gains rights only after the holder's death, not during the holder's lifetime.

  1. ANomination is allowed for non-individual accounts such as companies
  2. BA nominee can be appointed, and an individual holder may also opt out of nomination through a declarationCorrect
  3. CNomination can be made only after the holder's death
  4. DA nominee becomes the owner of the securities during the holder's lifetime

Explanation

Individual account holders may nominate persons or choose to opt out by declaration. Non-individuals such as companies cannot nominate, and the nominee has rights only after the holder's death, not during lifetime.

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