Section 9(4) in The Government Securities Act, 2006
(4)A transfer of a Government security made in accordance with sub-section (2) of section 5 shall automatically cancel the nomination previously made:Provided that where a Government security is in the possession of a person either as a pledge or by way of security for any purpose, such possession shall not have the effect of cancelling the nomination, but the right of the nominee shall be subject to the right of the person so possessing it.
