Existing investors do not need to submit the nomination information again if they have already provided it. By implementing two factor authentication (2FA), current investors can access the online trading platforms of Stock Brokers/Depository Participants that provide these services and submit their nomination information or opt out of nomination (not to nominate anyone).
According SEBI circular dated March 27, 2023 “Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e.furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of SEBI circular dated February 24, 2022with regard to freezing of accounts shall come into force with effect from September 30, 2023instead of March 31, 2023.”
You can nominate someone for your demat account online thanks to the assistance of NSDL. (Applicable to residents and individuals with a single demat account). Holders of demat accounts may add up to three nominees using this option.
How to add nominee in NSDL demat accounts
Step 1: Click on https://eservices.nsdl.com/instademat-kyc-nomination/#/login
Step 2: Enter < DP ID > + < Client ID > + < PAN >. OTP on mobile number registered in your demat account.
Step 3 : Select ‘Nominate’ OR click on Opt Out.
Step 4 : e-sign using AADHAAR. OTP on mobile number registered with UIDAI (AADHAAR).
Important FAQs related to demat nomination according to the NSDL website.
What is the meaning of ‘Nomination’?
Nomination is a simple process by which a holder of securities communicates his / her preference regarding who should receive these securities in case of his / her death. Process of nomination in respect of demat account can be done at the time of opening of demat account or any time later.
Can joint holders nominate?
Yes. Nomination is permitted for accounts with joint holders. However, in case of death of any of the joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee (if nomination given, else to legal heir).
Who can be a nominee?
Only an individual can be a nominee. Non individuals like society, trust, body corporate, partnership firm, Hindu Undivided Family cannot be a nominee in the demat account.
Can there be more than one nominee?
Yes, at present up to three nominations can be made for one demat account. In case, two or three nominees are mentioned, then it is also required to mention the proportion (%) in which various securities are desired to be transmitted upon death of the account holder.
What is the procedure for appointing a nominee?
The demat account holders need to mention the information related to nominee(s) in the account opening form at the time of account opening. Up to three different individuals may be mentioned as nominee in one demat account.
In case, nomination was not done at the time of account opening or was done but account holder(s) wants to change it anytime later, then a Nomination form needs to be filled up and provided to DP.
Can the nominee be changed?
Yes, the nomination can be changed anytime by the account holder(s) by simply filling up the Nomination form once again and submitting it to the DP.