The Securities and Exchange Board of India (SEBI) on Friday iterated those opening fresh demat and trading account will be given the facility of nomination or even opting out nomination.
Further as per a circular, in respect of the same, SEBI has issued a declaration form.
Also, all eligible trading and demat account holders will need to make nomination by March 31,2022 failing which the account shall be frozen.
Nominee is the person to whom the underlying securities in the demat and trading account shall be transferred in case of unforeseen death of the primary account holder
Herein as per the new laws per se nomination, trading members as well as DPs shall activate new accounts from October 1, 2021 only upon receipt of this declaration form concerning nomination.
For easing the process, the wet signature of the account holder shall be required and there will be no need of any witness. But in the case of thumb impression there will be necessity of a witness. Also, the e-signature route shall be valid.
With PTI Inputs