Transmission and Nomination Quiz

What does transmission mean in the context of shares?

• Transfer of ownership

• Change in color

• Increase in value

• Decrease in quantity

Who can be nominated as the recipient of shares in the event of the original investor's death?

• Any person, regardless of residency

• Only non-resident Indian investors

• Only corporate investors

• Only resident Indian investors

What is required for a nomination to be valid in the depository?

• Signature of the nominee's guardian

• Photograph of the nominee

• Signature of the POA holder

• Details of the securities mentioned in the nomination form

What documents are required for transmission of securities held singly in the depository without nomination?

• Original death certificate and succession certificate

• Original death certificate and letter of indemnity

• Probate or letter of administration and affidavit

• Original death certificate and no objection certificate from legal heirs

In case of death of one of the clients in a joint account, what is required for transmission of securities to the account of the surviving client(s)?

• Original death certificate and no objection certificate from legal heirs

• Separate account with any DP and original death certificate

• Original death certificate and signature of the surviving client(s)

• Separate account with any DP and letter of indemnity

What is required for transmission of securities held by Karta of Hindu Undivided Family (HUF) in the depository?

• True copy of the death certificate and letter of indemnity

• True copy of the death certificate and declaration of the list of surviving members of HUF

• Probate or letter of administration and affidavit

• Original death certificate and no objection certificate from legal heirs

In case of partial partition of HUF, what can the karta do with the shares?

• Submit a new list of members and a no objection from the surviving members

• Transfer shares to the members seeking partition

• Dissolve the entire HUF and transfer shares to the members

• Close the account held in the name of the deceased Karta

What is the purpose of nomination in respect of shares, debentures, fixed deposits, etc.?

• To open a new account with any depository

• To prove entitlement by submitting appropriate documents

• To transfer ownership to the nominee

• To increase the market value of the securities

What Act introduced provisions for nomination in respect of shares, debentures, fixed deposits, etc.?

• Companies Act, 1956

• Companies Act, 2013

• Companies (Amendment) Act, 1999

• Securities Exchange Act, 1934

Can a minor nominate someone for a demat account?

• Yes, but only through a guardian

• No, minors cannot nominate anyone

• Yes, without any restrictions

• Yes, but only if they are above 16 years old