Demat Accounts To Be Frozen If Nomination Not Filed By This Deadline. Know How To Apply

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

Demat account holders need to add nomination before March 31

Source : Getty

If you have not added any nomination to your demat account, then make sure you do it before March 31 as investors not meeting the deadline will see trading and demat accounts frozen for debits.

The deadline for making nominations was supposed to be March 2022, but Sebi (Securities and Exchange Board of India) had extended the date by a year, according to the publication Economic Times report.

However, the decision to extend the deadline was taken after considering representations and feedback from various stakeholders. In July 2021, Sebi had asked all existing eligible trading and demat account holders to provide a choice of nomination.

For investors who have already provided the nomination details prior to the circular issued in July 2021, re-submission of nomination details is optional.

Further, existing investors who have not submitted nomination details yet can submit their nomination or opt out of the nomination by way of two-factor authentication login on trading platforms for stock brokers or depository participants providing such service.

The mobile number, email ID, and identification details of the nominee or guardian of the minor nominee are optional.

In case of new investors looking to open a new trading and demat account will have the choice of providing a nomination or opting out of nomination through a declaration form. Further, no witnesses will be required for filing the nomination for the trading and demat accounts wherever the form is physically signed by the account holder.

The nomination or declaration form filed online using the e-sign facility will not have witness requirements. However, if the account holder uses a thumb impression instead of a signature, a witness signature will have to be there on the form as well.

Check steps to add nominee to demat account

Login to your demat account

Navigate to 'My nominees' under the profile segment and you will be redirected to the nominee details page

You can chose 'add nominee' or 'opt-out'

Fill the nominee details and upload ID proof of the nominee. After uploading the documents, enter the nominee share in 'percentage' you would like to assign to the nominee

E-sign the document with Aadhaar OTP

The details of the nominee will be then processed for verification and added to the demat account within 24-48 hours