Mumbai, India, January 22, 2023 - The 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 31st December 2023. Earlier adding a nominee was an option, however, now all individuals must add a nominee when opening a demat account.
This regulatory change has significant implications for the investment landscape in India. Choice, a leading full-service broker, has been proactive in facilitating this transition for its customers. With its user-friendly trading app and hassle-free process for free Demat account opening and easy nomination process, Choice is ensuring that its customers can comply with this new regulation seamlessly.
The nomination process in Demat accounts is crucial as it ensures the smooth transition of securities in the event of the account holder's demise. The transfer of securities such as shares, bonds, mutual fund units, etc., can be transmitted smoothly and seamlessly. Thus safeguarding the investments and ensuring that they are not lost or stuck in legal disputes.
The process of nomination has been made significantly easier, thanks to brokers like Choice. Demat account holders can now add up to three nominees to their Demat accounts. This ease of access has played a crucial role in encouraging more individuals to add nominees to their Demat accounts. Updating nominee details in your demat account is simple and fast.
Here is how you can go about adding nominees online:
Log into Your Online Trading Account
Navigate to the Profile Section
Access Nominee Details
Add or Modify Nominee
Provide Nominee Information
Review and Confirm
Submission and Processing
If you prefer the old-school way, you can update the nominee details by obtaining the nominee registration form from your broker or Depository Participant (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, and couriering the form and necessary documents to your broker’s head office. Your broker will then verify the nominee details and update your demat account.
"At Choice, our goal is to simplify the investment process for our clients to the greatest extent possible. The new mandate of adding a nominee to Demat accounts is a significant step towards ensuring the security of investments. We are fully committed to facilitating this transition and continue to provide our customers with the tools and resources they need to navigate this change effectively," says a spokesperson from Choice.
Despite the simplicity of the process, many new and seasoned investors are still unaware of the importance of nomination in Demat accounts. This underscores the need for increased awareness and education on the subject.
The implications of this growth for the Indian economy are significant. It indicates a deepening of the capital market, increased participation of retail investors, and a move towards a more inclusive financial system. As more people add nominees to their Demat accounts, it can lead to better protection of investments and peace of mind for investors.
To be a part of this new era of investment, open a Demat account with Choice. Experience the ease of trading with our user-friendly trading app Choice FinX and safeguard your investments by adding a nominee.