If you still haven't added a nominee to your demat and trading accounts, you no longer need to scramble to get it done by March 31st. Capital markets regulator SEBI has extended the deadline for this, to September 30, 2023. Failing to meet this deadline, will result in your trading and demat accounts being frozen for debits.
As per an Economic Times report, brokers say that atleast half of their clients are yet to comply with this rule.
As per a CNBC-TV 18 report, a similar move is anticipated for mutual funds as well. The current deadline for mutual fund nominations is March 31, 2023
Earlier the last date for nomination was March 31 2022. SEBI later extended the deadline by one year.
Investors who open new demat or trading accounts have the option of providing a nomination or opting out of nomination through a declaration form.
There will be no requirement of witnesses for filing the nomination for trading or demat accounts if the account holder has physically signed or e-signed the forms. However, a witness' signature will be required if a thumb impression has been used.
The existing investors who have not submitted their nominations choices yet can do so by way of two-factor authentication login on trading platforms for stock brokers or depository participants providing such service.
Steps to add a nominee to demat account
Step 1: Login to your demat account
Step 2: Navigate to 'My nominees' under the profile segment and you will be redirected to the nominee details page
Step 3: You can choose 'add nominee' or 'opt-out'
Step 4: Fill in the nominee details and upload the ID proof of the nominee. After uploading the documents, enter the nominee share in the 'percentage' you would like to assign to the nominee
Step 5: E-sign the document with Aadhaar OTP