A DEMAT Account lets you hold your shares in an online or dematerialized form. You can open a DEMAT Account with a depository participant and at the time of account opening, you can add a nominee. Earlier, you had the option to opt out of adding a nominee. However, as per the Securities and Exchange Board of India (SEBI) notification, you must add a nominee to your DEMAT Account before June 30, 2024. Keep reading on to know how to add a nominee in a DEMAT Account online.

 

Mandatory to Add a Nominee in a DEMAT Account?

Yes, it is. The SEBI has made it mandatory for DEMAT Account holders to add nominees to before the stipulated deadline. If you fail to do so, the DEMAT Account will be frozen.

 

Who is a Nominee?

When it comes to DEMAT Account, a nominee is an individual who receives the securities held by the account holder in the case of the account holder’s death.

 

How to Add a Nominee to DEMAT Account Online?

You can conveniently add a nominee to your DEMAT Account online, provided your registered mobile number is linked to your Aadhaar.

 

Follow these steps:

• Log into your online DEMAT Account portal.
• Go to your Accounts or relevant option.
• Select the option to add a nominee. You may add up to three individuals as nominees.
• Enter the nominee details, viz., Name, Relationship with the nominee, the nominee’s address and contact information. In the case of multiple nominees, you must also assign a percentage of the share each nominee will receive.
• Accept the terms and conditions and continue.
• On the next page, you’ll be asked to enter your Aadhaar number.
• Click on ‘send OTP’ or a similar option.
• Enter the OTP received on your registered mobile number and verify.
• You will receive an email once the nominee is successfully added to the DEMAT Account.

 

Note that this process can vary across brokers.

 

How to Add a Nominee to DEMAT Account Online via NSDL?

The National Securities Depository Limited (NSDL) allows you to add a nominee from its portal. This is applicable if your broker is a Depository Participant (DP) with NSDL.

Follow the steps:

• Visit the nominee addition portal of NSDL.
• Enter your Depository Participant Identification (DP ID), your client ID and Permanent Account Number (PAN) and submit.
• Enter the OTP sent to your registered mobile number.
• You will be directed to an online nomination update form.
• Click on ‘Opt-in/Opt-out Nomination’ and select ‘I wish to Nominate’.
• Enter the nominee details, including their name, your relationship with them, their address and other required information. If the nominee is a minor, you must provide the minor’s guardian details.
• For multiple nominees, assign the percentage of shares each nominee will receive.
• Next, you will be prompted to verify and confirm the nominee details by agreeing to an e-signature.
• Enter the OTP sent to the registered mobile number and proceed.
• Complete the Aadhaar e-Sign process by entering an OTP once again and submit.
• This completes the process to add a nominee to your DEMAT Account via NSDL. You will receive an SMS from NSDL notifying you of your request’s status, whether rejected or approved.

 

How to Add a Nominee to DEMAT Account Offline?

If your Aadhaar is not linked to your mobile number, you’ll have to submit a form to the broker’s office. You may be able to send the form to the office via post as well. You can get in touch with the broker to get the address where the form needs to be sent.

You must fill in the nominee name, shares of each nominee (in case of multiple nominees), relationship with the nominee, nominee identification details, details of the guardian (in case the nominee is a minor) and all other details as required in the form.

 

Answering Common Questions about Nominee

Here are answers to questions you may have about nominee addition in your DEMAT Account:-

 

Who can nominate?

Individuals who hold a DEMAT Account solely or jointly can add a nominee. Non-individuals like societies, trusts, partnership firms, Hindu Undivided Family (HUF) and a Power of Attorney holder cannot nominate. Also, account holders who are minors cannot nominate directly or through their guardians.

 

Who can be a nominee?

Any individual can be a nominee.

Can I nominate a Non-Resident Indian (NRI)?

Yes, you can (subject to the provision of foreign exchange regulations in force).

Can I change the nominee?

Yes, you can. You can change the nominee at any time.

 

Synopsis:

The Securities and Exchange Board of India (SEBI) has mandated nominee addition to DEMAT Accounts.

You can add a nominee online via the broker’s portal or submit a form offline at the broker’s office.

Non-addition of the nominee will lead to DEMAT Account freezing.