About Nomination in your Demat & Trading Account
Adding a nominee to investment instruments is crucial for the smooth transfer of assets to the intended individual in case of unfortunate demise of the investor. Reports abound with cases of unclaimed investments in Demat accounts. A prudent investor must take care of appointing a nominee to avoid hassles at the time of transfer of stock’s ownership to the desired family member. This also saves the family member from long drawn processes that ensues when the investing individual does not assign a proper nominee.
Understanding the importance of nomination, SEBI, the market regulator is taking major actions to ensure that investors make proper nomination for their Demat and trading accounts. For investors opening new trading and or Demat accounts on or after October 01, 2021, SEBI has mandated the filing of nomination details/declarations for opting out of nomination via circular number SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 July 23, 2021. SEBI via above mentioned circular also mandated the investors whose accounts were opened before October 01, 2021, to either provide the nomination or opt out of nomination by March 31, 2023 (considering the extension via circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 dated February 24, 2022).
The circular has also mandated that all current trading and Demat account holders submit the nomination/opt out of nomination.
If you have a Demat and trading account with us, you can log in to Samadhan and visit the Add Nominee Section
Add Nominees to your Account and complete the e-sign. In case you do not wish to add a nominee, you can select the opt-out option and complete the e-sign. Additionally, on or before March 31, 2023, all current eligible trading and Demat account holders must submit their choice of nomination/opt out of nomination; otherwise, the trading accounts will be frozen for trading and the Demat accounts will be frozen for debits. We recommend completing the nomination process today to avoid any issue while trading in the coming time.