Section 16 in The Small Industries Development Bank Of India (General Regulations), 2000*
16. Manner in which nomination may be made and discharge on payment .-(1) Notwithstanding anything contained in regulation 15, where any security is held by one or more persons, the sole holder or, as the case may be, all the holders together may nominate any person or persons to whom, in the event of the death of the sole holder or the death of all the holders, the amount due on such security may be paid:
Provided that when the security is held by two or more persons and the terms of issue of such security provide for payment of the amount due thereon to the survivor or survivors, the nominee shall become entitled to receive the amount on the security only on the death of all the holders:Provided further that nothing contained in this regulation shall affect any claim which any representative of the deceased holder may have against the nominee in respect of any amount due on the security.(2)A nomination shall cease to be in force from the date of death of the sole nominee during the life time of the holder.(3)If two or more persons are nominated under sub-regulation (1), the amount due on the security shall be distributed amongst the nominees in the manner specified in the nomination and in the absence of such specification, the amount shall be distributed equally among all the nominees:Provided, however, that if no nomination subsists or if such nomination relates only to a part of the amount due, the whole amount or part thereof to which the nomination does not relate, shall be paid to the persons who may be entitled thereto under sub-regulation (2) of regulation 15.(4)Where the nominee first named has predeceased the holder and the holder has not cancelled the nomination or substituted the nomination, the nominee second named shall be entitled to receive the amount in respect of the security of the deceased holder and in the same manner on the death of a successive nominee, the nominee next named shall be entitled to receive the amount in respect of such security.(5)A nomination under sub-regulation (1) may be made by the sole holder or, as the case may be, all the holders together in Form I of Schedule V to these regulations.(6)A nomination may be made only in respect of the security which is held in the individual capacity of the holder and not in any representative capacity as the holder of an office or otherwise.(7)A nomination may also be made in favour of Central Government or State Government, a local authority, any person designated by virtue of his office or a religious or charitable trust.(8)Where the nominee is a minor, the sole holder or, as the case may be, all the holders together may appoint any person (not being a minor) to receive the amount due on the security during the minority of the nominee.(9)Where the security is held in the name of a minor, the nomination, if any, shall be made by a person lawfully entitled to act on behalf of the minor.(10)A nomination may be substituted or cancelled by submitting an application to the Small Industries Bank in Form II of Schedule V to these regulations.(11)A nomination or a substitution or a cancellation of a nomination shall be registered in the books of the Small Industries Bank and the fact of registration shall be noted on the security and, on such registration, the nomination, substitution or cancellation, as the case may be, shall be deemed to be effective from the date on which it was submitted.(12)The substitution of nomination or cancellation of nomination shall not be valid in the case of a security held jointly by two or more holders, unless such substitution or cancellation is made by all the surviving holder(s).(13)The rights, which a nominee has acquired in relation to the security under a nomination duly made and registered under this regulation, shall not be affected by reason of the issue of a duplicate scrip in respect of the security and the nominee shall have the same rights in relation to such duplicate scrip as he had in relation to the original scrip.(14)Payment by the Small Industries Bank to the nominee in accordance with the provisions of these regulations in respect of a security to which the nomination relates shall constitute a full discharge to the Small Industries Bank of its liability.Explanation .-For the purpose of regulations 16 and 17 "security" means-(a)any debenture issued under clause (a) of sub-section (1) of section 15 of the Act;(b)any deposit accepted under clause (d) of sub-section (1) of section 15 of the Act; or(c)any other deposit accepted under a scheme made under any law.
