DEMAT A/c-DELETION OF NAME ON DEATH

POSTED BY Sundaram A ON May 30, 2013 9:19 am ONE COMMENT

I hold 2 Demat A/cs with Yes Bank-1)Myself and my wife & 2)My wife and myself.My wife passed away recently.Hence I need to delete her name from the 2 Demat A/cs.My queries:

1) When my wife’s name is deleted,I will have 2 Demat A/cs in my name(singly) with the same DP,viz.Yes Bank.Am I allowed to hold 2 Demat A/cs with the same DP?If not,then I would have to merge the 2 Demat A/cs after the deletion of my wife’s name.Would this(the merging of the 2 A/cs standing in my single name) have any I.T. implications?

2) The 2 A/cs have different Nominees.If I have to necessarily merge the 2 A/cs,guess have to submit fresh Nomination choosing one of the Nominees as the beneficiary.Please confirm.

3) Once my wife’s name is deleted from the 2 A/cs,do I have to inform separately each of the Companies where I have invested?Or would it be updated in the Companies’ records automatically?

4) In the 2nd A/c where my wife is the 1st Holder,currently her Bank A/c is linked.I guess I would have to change the Bank A/c to mine.What’s the procedure for this?

5) Since the Demat A/cs would now be in my single name,in case of an eventuality will my daughter(the Nominee) have any difficulty in transferring the holdings to her name?What has my daughter to do to realise the value of the investments(basically in bond/debt issues of Companies)?How does it work?

These are some of the issues which come up in my mind immediately.Would be obliged for any help/clarifications offered.Thanks for your time.

One reply on this article “DEMAT A/c-DELETION OF NAME ON DEATH”

  1. Dear Sundaram, No you can not hold 2 demat accounts under single ownserhip with the Same DP. Here is my suggestion to you for the easy way out. Transfer the shares from Wife’s primary name account to your primary name account offline. Close this account. Now there is only 1 account & it’s under your name. Here wife’s name is deleted already but original nomination done by you (in your d’ter’s name) ‘ll still hold good. As the name deletion is happening AT Depository level (NSDL or CDSL as the case may be), you need not to inform the stock cos. Yes in case there are any bonds which were purchased under both accounts, these should be converted to your own single name demat by contacting the respective RTA of the bonds. As you were also joint account holder for the wife’s demat account, from taxation angle, not much is there to care about as the original holding date for each stock or bond ‘ll be used for taxation.

    Thanks

    Ashal

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