Mihir..... (Wealth Manager) 08 March 2011

Nomination

My father had a demat account with a bank. He passed away last year. The demat account opening form stated the nominee (my name). Now the bank is saying that a separate nomination form was not submitted, hence the nomination in invalid. Therefore, they are asking me to go to court and obtain the succession certificate to acquire my father's demat shares.

Please let me know the court fees payable for obtaining the succession certificate for securities. I assume there is a percentage on the value of securities on the date of application. Is there any way I can convince the bank to exempt me, and accept me as the valid nominee?

Thanks in advance.

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5 Replies

V. VASUDEVAN (LEGAL COUNSEL) 08 March 2011

The bank's stand is unjustified. Please take up the matter with the NSDL or CDSL - the concerned depository and if not resolved, with SEBI. Please also review the regulations for demat shares - particularly nomination which can be downloaded from NSDL's website nsdl.co.in

Vasudevan

Mihir..... (Wealth Manager) 09 March 2011

The rules say that if NSDL JA form of nomination is not submitted, the original nomination stands invalid. Now they are asking me to get succession certificate from court to transfer shares, which will cost me 75K minimum.

Who wants to go to court for such matters and pay so much money unncessarily?

How to convince the bank to treat this account with valid nomination?

raj kumar ji (LAW STUDENT ) 11 March 2011

if the nomination is valid and no other legal hire object u can get the money or securities like bond shares etc.from the bank .but now a days bank do not pay the securities without succession certificate .

ambrish (service) 11 March 2011

Try to understand the banker as well....the nomination is invalid and the another form was not filed with bank now....banks thinks that if they hand over the shares to you and one fine day some body says that he/she is the legal hirer then the bank would be in trouble.

so there is not harm to get a succession certificate from court under section 372 of succession act which will help you in very matter of the succession... may it be house, bank deposits, FD, name change..shares etc...so better to get a succession certificate.

Ambrish.

www.advocatelive.com

Mihir..... (Wealth Manager) 12 March 2011

Yes Ambrish, the bank is entitled to look after its own interest, but here I am willing to provide them NOC from my brother. My brother is willing to sign the NOC for transferring the shares to my account, and so the interest of the bank will not be affected at all. It is going to be a clean transfer, no hassle now or hereafter.
My objection is on paying 75K unnecessarily when my case is so crystal clear. 75K is a big amount for anybody.

At the time of opening of the account, my name was mentioned in the nominee. Thereafter, my father was undergoing heart treatment so he was not in a position to submit yet another nomination form. For this reason, bank is saying that nomination in invalid. I don't want to pay 75K for succession certificate.