Do you have a demat account with Upstox, Zerodha, AngelOne, or any other stock broker? If Yes, this could be important for you.
If you are an investor or Trader and you do not have a nominee to your demat account as of March 31, 2023, your trading and demat accounts will be frozen. All Demat and trading account holders are required by the Securities and Exchange Board of India (SEBI) to choose a nominee by March 31, 2023. In the event that investors miss the deadline, their Demat account will be frozen. Previously, the last date for submitting nominations was March 31, 2022. The deadline was later extended by SEBI by one year. Investors who have already Submitted nomination details to their Stock Broker are not required to resubmit the nomination details.
For new investors who want to Open a new trading and Demat account, a declaration form will let them choose whether to make a nomination or not. Also, no witnesses will be needed to file the nomination for trading and Demat accounts if the account holder signs the form in person.
Why Should you Add Nominee to Your Demat Account ?
Having a nominee for your demat account is essential since it guarantees that your securities will be transferred to that person in the case of your death. If you name a receiver or nominee, they will receive your securities directly from you, without the proceedings.
In the event that you do not add a nominee to your demat account, your loved ones may be forced to deal with a great deal of difficulty. In other situations, investments may remain frozen for years, and your family may be unable to access them at all.
How to add Nominee to Your Demat account ?
Here are the steps to add a nominee to your Upstox, Zerodha, Angelone or any Stock Broker Demat Account.
- Log in to your Demat Account
- Navigate to the “My nominees” section under the profile segment.
- On the nominee details page, choose to “add nominee” or “opt-out.“
- Fill in the nominee’s details and upload their ID proof.
- Enter the percentage of shares you want to assign to the nominee.
- E-sign the document with an Aadhaar OTP.
- The nominee will be added to the Demat account within 24-48 hours.
Offline Process to Add Nominee to Your Demat Account
- Download the ‘Nomination Form’ from the depository participant’s (e.g. Upstox Zerodha etc) website.
- Fill in the form with the required details.
- Affix your signatures and witnesses
- Send the form along with the necessary documents to the Stock Broker Address
If you do not have a nominee on your Demat account by March 31, 2023, your trading and demat accounts will be frozen. Adding a nominee is an easy step that will safeguard your investments in the event of unforeseen events. Remember that the nominee share can be modified or altered at any moment using the same procedure.