Last chance add nominee: How to stop your demat account from getting frozen
1 min read . Updated: 10 Mar 2023, 12:54 PM IST
PremiumThose who fail to add a nominee a by the deadline will have their trading and demat accounts frozen.
The Securities and Exchange Board of India (SEBI) has extended the deadline for existing eligible trading and demat account holders to nominate a beneficiary for their accounts to March 31, 2023. This will be investors’ last chance to do it as those who fail to nominate a beneficiary by the deadline will have their trading and demat accounts frozen for debits. The deadline extension was given after feedback from various stakeholders.
If you’re an existing investor
In July 2021, SEBI asked all existing eligible trading and demat account holders to provide a choice of nomination. Existing investors who have already provided nomination details prior to the circular issued in July 2021 are not required to resubmit nomination details. Investors who have not submitted nomination details yet have until March 31 to do so. They can submit their nomination or opt out of nomination via two-factor authentication login on trading platforms for stock brokers or depository participants that provide such a service. The mobile number, email ID, and identification details of the nominee or guardian of the minor nominee are optional.
If you’re a new investor
Investors who are opening new trading and demat accounts must provide a nomination or opt-out of nomination through a declaration form. No witnesses are required for filing the nomination for the trading and demat accounts wherever the form is physically signed by the account holder. Nomination or declaration forms filed online using the e-sign facility will not require witness signatures, but if the account holder uses a thumb impression instead of a signature, a witness signature is required.
How to add nominee to demat account
Login to your demat account. Navigate to 'My nominees' under the profile segment, which will redirect to the nominee details page. Choose 'add nominee' or 'opt-out'.
Fill out the nominee details and upload an ID proof of the nominee. After uploading the documents, enter the nominee share in percentage that the investor would like to assign to the nominee. E-sign the document with Aadhaar OTP. The details of the nominee will be processed.