Demat Account will be frozen if Failed to file Nomination by March 31

Do you make stock market or mutual fund investments? Then this information is for you. With a deadline of March 31, 2023, SEBI has made it mandatory for all demat and trading account holders to add a nominee. Investors' demat accounts will be frozen if they do not meet the deadline. Here are the specifics on how to add a nominee to your demat account.

The deadline for demat account nomination is March 31, and investors who do not meet the deadline will have their trading and demat accounts frozen for debits. The nomination deadline was supposed to be March 2022, but Sebi (Securities and Exchange Board of India) extended it by a year. Following representations and feedback from various stakeholders, the decision to extend the deadline was made.

Sebi had requested nominations from all existing eligible trading and demat account holders by July 2021. Re-submission of nomination details is optional for existing investors who provided nomination details prior to the circular issued in July 2021. Furthermore, existing investors who have not yet submitted nomination details but wish to do so will be able to do so through two-factor authentication login on trading platforms for stock brokers or depository participants that provide such services.

What is the procedure for adding a nominee to a demat account?

Step 1: Access your demat account.

Step 2: Select 'My nominees' from the profile segment to be directed to the nominee details page.

Step 3: Select 'add nominee' or 'opt-out'.

Step 4: Fill out the nominee information and upload the nominee's ID proof. After uploading the documents, enter the nominee share you want to assign to the nominee in the 'percentage' field.

Step 5: Sign the document electronically using your Aadhaar OTP.

Step 6: The nominee's information will then be verified and added to the demat account within 24-48 hours.