Last Chance to Add Nominee: Stop your Demat Account from getting Frozen

The Securities and Exchange Board of India (SEBI) has extended the deadline for existing eligible trading and demat account holders to name a beneficiary to March 31, 2023. This is the last chance for investors to do so, as those who do not name a beneficiary by the deadline will have their trading and demat accounts suspended for debits. The deadline was extended in response to comments from numerous parties.

If you’re an existing investor

SEBI requested nominations from all existing eligible trading and demat account holders in July 2021. Current investors who gave nomination details prior to the July 2021 circular are not required to resubmit nomination details. Investors who have yet to submit nomination information have until March 31 to do so. They can submit or withdraw their nomination using two-factor authentication login on trading platforms for stock brokers or depository participants who offer such a service. The nominee’s mobile phone number, email address, and identity information are optional.

If you’re a new investor

Investors who open new trading and demat accounts must complete a declaration form and give a nomination or opt-out of nomination. Where the paperwork is physically signed by the account holder, no witnesses are necessary to file the nomination for trading and demat accounts. Nomination or declaration forms completed online using the e-sign feature do not require witness signatures, however a witness signature is necessary if the account user provides a thumb impression instead of a signature.

How to add nominee to demat account?

Access your demat account. Go to the profile part and select ‘My nominees,’ which will take you to the nomination information page. Choose ‘add nominee’ or ‘opt out’.

Fill out the nominee’s information and upload an ID proof. Enter the nominee share in percentage that the investor would like to assign to the nominee after uploading the documents. Sign the document electronically using your Aadhaar OTP. The nominee’s information will be processed.