Demat account nomination: How to update nominee details? A step-by-step guide
demat account, which you can open with a Depository Participant (DP) authorised by the Securities and Exchange Board of India (SEBI). A demat account allows you to hold securities in electronic form. DPs register the accounts with either the National Securities Depository Limited (NSDL) or the Central Depository Services Limited (CDSL).
According to a circular released by SEBI in July 2021, demat account holders need to provide nominations. You can nominate family members such as parents, spouse, or children, or other individuals. If you choose to nominate a minor, you must also provide the details of their guardian.
The authorised person will be able to own, manage, and benefit from the account. You can appoint up to three nominees to your demat account, assigning a specific percentage of the account to each nominee. For instance, if you nominate three people, you could allocate 35 percent to one nominee, 40 percent to another, and 25 percent to the third.
Adding/updating a nominee to your demat account online is a simple process. Initially, you can add nominee details in the account opening form submitted to your broker. To add, modify, or remove nominees later, submit an Annexure 1A form to your broker.
Follow these steps to add/update a nominee online: When appointing a nominee for a demat account, keep the following key points in mind: Only individuals can be appointed as nominees; non-individuals like corporate institutions cannot be nominated. The form requires the nominee's name and address, along with the account holder's signature. Submitting nominee ID proof is optional.
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