As an investor in the Indian stock market, it is important to be aware of the rules and regulations that govern your investments. The Securities and Exchange Board of India (SEBI) has recently mandated all investors to add nominees to their demat account by March 31st, 2023.
Failure to comply with this regulation can result in your account being frozen, preventing you from withdrawing your money.
Here is the process for adding a nominee to your demat account online.
Step 1: Logging into Your Demat Account
In order to add a nominee to your demat account, you must log in. You can do this by visiting the website of your demat service provider and entering your login credentials. Once you have successfully logged in, navigate to the “My nominees” section.
Step 2: Adding Nominee Details and ID Proof
In the “My nominees” section, you will be prompted to enter the details of your nominee, including their name, address, and relationship to you. You will also need to provide their ID proof, which could be their Aadhaar card or PAN card. Make sure that you have all the necessary details before proceeding to the next step.
Step 3: Assigning Nominee Shares
The next step is to assign nominee shares. This means deciding what percentage of your shares will go to the nominee in case of your death. You can assign nominee shares by selecting the “Nominee shares” option and entering the percentage of shares you wish to assign.
Step 4: E-Signing the Document
Once you have entered all the necessary details, you will be asked to e-sign the document with an Aadhaar OTP. This is a secure and easy way to authenticate the document and complete the process of adding a nominee to your demat account.
By following these simple steps, you can easily add a nominee to your demat account online and ensure that your investments are protected in the event of your death.