Your Demat A/c Will be Inactive if You Don’t Do this By Mar 31, 2023
If you are dealing in share trading or investing in the stock market through your demat account you must read this article. As per the new guidelines by the Government, all demat account holders must have to update the nominee details by 31 March 2023, otherwise, their account will be inactive or will be frozen for debits.
If you fail to add a nominee to your demat account by March 31, 2023, you won’t be able to trade shares as before as your demat account will become inactive. According to the NSDL website, “Opt-in/Opt-out of Nomination in your demat account before March 31, 2023 to avoid your demat account becoming inactive.”
The deadline for making nominations was scheduled to be March 2022, but the Securities and Exchange Board of India (SEBI) had extended the timeframe to March 31, 2023. Recently Government has mandatory for everyone to link their PAN card with their Aadhaar card by 31 March 2023, otherwise, their PAN card will be inoperative.
Also Read: What will happen if PAN is not linked with Aadhaar: How to Check & Link
Existing investors who have already given nomination details are not required to resubmit the nomination details. Existing investors who wish to submit their nomination information or opt out of nomination (not to nominate anyone) may do so by using two-factor authentication (2FA) to log into the online trading platform for Stock Brokers/Depository Participants offering such services.
How to Add Nominee in Demat Account Online NSDL Online:
Step 1: Click on https://eservices.nsdl.com/instademat-kyc-nomination/#/login.
Step 2: Enter DP ID, Client ID, and PAN. OTP on the mobile number registered in your demat account.
Step 3: Select Nominate OR Opt Out.
Step 4: e-sign using AADHAAR. OTP on the mobile number registered with UIDAI (AADHAAR).
Note: NSDL Customers can add holders can add up to three nominees in their demat accounts.
According to the SEBI circular dated February 24, 2022, “Investors opening new trading and or demat account(s) on or after October 01, 2021, shall have the choice of providing nomination or opting out the nomination, as follows; a. The format for the nomination form is given in Annexure –A to this circular b. Opt out of nomination through ‘Declaration Form’, as provided in Annexure – B to this circular”.
Further, all existing eligible trading and demat account holders will opt for nomination or opt-out on or before March 31, 2023, failing which the trading accounts shall be frozen for trading and demat accounts shall be frozen for debits.
Now, the details previously required in the form at Annexure A of the circular viz. mobile number, e-mail ID and identification details of the nominee(s)/ guardian(s) of the minor nominee(s) have been made optional.
Can separate nominations be made for each security held in a Demat account?
According to the NSDL FAQs, “No. Nomination can be made account-wise and not security-wise. This means, in case of the death of the account holder, all the securities lying in the demat account, are liable to be transmitted to the nominee(s) in the pre-registered proportion. If you wish different nominees for different securities, then you may consider keeping the securities in different demat accounts and mention nominee(s) as per your choice.”
Is there can 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 the nominee(s) in the account opening form at the time of account opening. Up to three different individuals may be mentioned as nominees in one demat account.
In case, the nomination was not done at the time of account opening or was done but the account holder(s) wants to change it anytime later, then a Nomination form needs to be filled up and provided to DP,” as per NSDL FAQs.
Source: The Economic Times
