A folio has three nominees with shares of 50%, 30% and 20%. The nominee with 30% dies. What happens on the investor's subsequent death?
With multiple nominees, the death of one results in transmission to the remaining nominee(s). With a single nominee, the nominee's death cancels the nomination.
The concept: Nomination, pledge, demat and transmission
Worked example
Vikram names his wife as nominee. After his death, the units are transmitted to her, but she holds them in trust for all his legal heirs, who can claim their share under his will or succession law.
Exam trap: The nominee is a trustee for the legal heirs, not the owner. A private company cannot be a nominee.