Securities and Exchange Board of India (SEBI) has made it mandatory to add a nominee to your Demat account. The deadline to comply with this requirement is 30th September 2023.
Earlier adding a nominee was optional, but now it is compulsory for all individuals to add a nominee while opening a demat account.
This guide will walk you through the step-by-step process of updating nominee details in your Demat account. So you can make sure your investments remain protected and your loved ones secure.
How to Add a Nominee to Demat Account Online?
Updating nominee details in your demat account is simpler than you might think. Here is how you can go about it:
Step 1: Log into Your Online Trading Account
The first step involves accessing your online trading account. Log in using your credentials and make sure you are on a secure connection to keep your data safe. This initial step sets the stage for safeguarding your investment and enabling a seamless process.
Step 2: Navigate to the Profile Section
Head to the “Profile” section within your trading account. This section is often the repository for personal and account-related information, making it the ideal starting point for updating nominee details.
Step 3: Access Nominee Details
Within the Profile section, look for an option related to nominee details. This may be labeled as “Nominee Information,” “Add Nominee,” “Manage Nominee,” or a similar title. Now click on the said option to proceed to the next step.
Step 4: Add or Modify Nominee
If you haven’t already added a nominee, you will likely find an option to “Add Nominee.” Click on this option to start the process of entering nominee details. In case you are updating or modifying existing nominee details, select the appropriate option for making changes.
Step 5: Provide Nominee Information
Enter all the required details for the nominee. This will include the nominee’s full name, date of birth, PAN number, relationship with you, and the percentage of assets you wish to allocate to them in case of having multiple nominees. Be certain of the provided information, as any discrepancies could lead to complications later on. Accuracy is vital.
Step 6: Review and Confirm
Before you finalize the nominee details, take a moment to review the information you have entered. Double-check the accuracy of the names, dates, and other essential information. And confirm that the percentage allocation adds up to 100 percent or as desired.
Step 7: E-Signature Authorization
At this stage, you may be prompted to provide e-signature authorization for the changes made. This would involve verifying your identity through your Aadhar number or virtual ID, followed by a One Time Password (OTP) validation sent to your registered mobile number and email. Remember, e-signature adds an extra layer of security to ensure the legitimacy of the updates.
Step 8: Submission and Processing
After completing the e-signature process, your request for updating nominee details will be submitted for processing. This step is usually reviewed and approved by your depository participant (DP), who oversees your demat account. The processing time typically takes about 2 business days.
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How to Add a Nominee in Demat Account Offline?
If you prefer the old-school way, you can update the nominee details by obtaining the nominee registration form from your DP. This process involves:
- Filling out the form with accurate nominee details, your demat account number, and your signature
- Attaching copies of your ID and address proof
- Couriering the form and necessary documents to your DP’s head office
- Your DP will then verify the nominee details and update your demat account
Why is it necessary to update nominee details?
Picture this: you are the captain of your investment ship. But life’s waters get choppy and uncertain, and you want a trusty mate to navigate when you are not around. That is when nominee details come in.
By designating a nominee - be it a family member, spouse, or friend, you are making sure your investments smoothly transfer to them in case of any unforeseen event. And from the complexities and potential legal battles associated with claiming securities.
No legal labyrinth, no complex paperwork, just a straightforward way to take care of your loved ones and your financial legacy.
Adding or updating a nominee might seem like a small step, but it’s a giant leap in securing your financial legacy. Whether you are a seasoned sailor in the world of investments or a newbie dipping your toes, remember that this pivotal step safeguards not just your assets, but also the future of your loved ones.
At Choice, we are all about empowering you with the knowledge and tools to navigate the seas of investment with confidence. We are here to guide you through the process, making sure your nominee details are shipshape and ready to weather any storm that life might bring.
Ready to update your nominee details? Reach out to our team of experts for personalized assistance. Your financial journey starts here, and we are here to help you achieve your financial goals.