How Do I Add a Nominee To My Demat Account

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Investors have the choice of adding a Demat account nominee or opting out of the nomination. If you want to opt for a nomination, submit the nomination form to your broker. Failing this, your Demat account will be frozen for debits from March 31, 2023.

What is a Demat account?

Stock investing requires you to open a Demat Account with a stock broker registered with the Securities Exchange Board of India (SEBI).

A Demat account is a mandatory account to hold financial assets in the online trading system where stock exchanges operate online and deal with digital financial securities only. A single Demat account can hold different assets, including equities, mutual funds, bonds, IPO issues , derivatives, etc. It is a safe storage for your assets as each debit or credit entry in your Demat account is completed following a secured process defined by the SEBI.

Adding Nominees to Demat Account

Among various Demat facilities, one is nomination in demat account. A nomination facility helps easy transfer of securities in the event of the demise of the Demat account holder.

How to add nominee in Demat account:

If you are wondering about how to add nominee in demat account, this blog got you covered. If your Aadhaar number is linked to your mobile number, you can add a Demat account nominee online at the official website of your stockbroker or central depositories NSDL/CDSL. Or you can visit your brokerage firm’s office for offline processing. You will need to submit the filled-in Annexure A - nomination form as per the SEBI circular.

How to check nominee in Demat account:

You can log in to your Demat account to check if you have added a nominee while opening your Demat account.

How many nominees can be appointed?

Demat account holders are allowed to add up to three nominees. If you are nominating more than one person, you need to specify the share percentage of each nominee. If it is not mentioned, it will be assumed equal for all.

Benefits of appointing a nominee

If a Demat account holder does not designate a person as his/her nominee, the legal heir of the account holder has to request for transmission of the Demat securities in their name, in the event of the Demat account holder's death. It makes the process of receiving beneficiary ownership of Demat securities may be lengthy and hassled without nomination.

Key benefits of assigning a nominee, include:

  • Nomination ensures that an investor's Demat assets will be transferred smoothly after his/her demise.
  • It can help speed up the transmission process of asset transfer.
  • Investors can avoid potential disputes about ownership benefits among their heirs.

The account holder can complete the nomination process without the beneficiary's approval at any time.

Conclusion

Thus, adding a Demat account nominee gives an investor peace of mind knowing that their investments will be taken care of in the event of their unfortunate demise. In the presence of a nominee, the process of share transmission becomes a lot easier. The legal heir does not have to gather a NOC (No Objection Certificate) and required affidavits from the courts.

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FAQs

Can I open multiple demat accounts?

Answer Field

Yes, you can open multiple demat accounts but only under the below conditions:

  • You can open only one demat account per DP using the same PAN card.
  • You can open multiple demat accounts with different DPs using the same PAN card.

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