Do you have a demat account? By September 30, 2023, you must enter nominee information to prevent your account from being frozen for debits. According to a SEBI circular, you must now either expressly opt-out or designate someone for your demat account.
Existing investors who have already submitted nomination information are not required to do so again. Your Demat account will be blocked for debits if you don’t submit the nomination information by September 30 or decide not to nominate anybody.
Key Points
- Demat account nomination is now required.
- Nominate someone or choose not to nominate anyone.
- Existing investors don’t have to submit their nomination information again.
- For investors to access the online trading platforms of Stock Brokers/Depository Participants and submit nominations or choose not to, a two-factor authentication (2FA) procedure is in place.
SEBI Circular Update
On March 27, 2023, a SEBI circular notified a revision to the provisions relating to account freezing’s effective date. These provisions will go into effect on September 30, 2023, rather than March 31, 2023.
Nomination Process with NSDL
- Online nomination for demat accounts is made easier by NSDL (applicable to residents and anyone with a single demat account).
- Demat account holders have the option of adding up to three nominees.
Adding A Nominee Using NSDL
- Visit https://eservices.nsdl.com/instademat-kyc-nomination/#/login .
- Enter the following information to get an OTP on your registered mobile number: DP ID, Client ID, and PAN.
- Select “Nominate” or “Opt Out.”
- E-sign utilizing UIDAI’s (AADHAAR) AADHAAR and an OTP given to your registered cellphone number.
