Haven’t added a nominee to your demat account yet? Well, here’s some good news. Securities and Exchange Board of India (SEBI) has extended the deadline for making nominations or opting out of a nomination for trading and demat account holders. The new deadline is 30 September 2023.
The market regulator had earlier asked all eligible account holders to provide a beneficiary for their accounts by 31 March 2023, or their accounts would be frozen for debits. Apparently, more than 50% of the retail investors are yet to follow this norm.
“Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of SEBI circular dated February 24, 2022 with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023,” read a circular by SEBI on March 27.
SEBI has also asked the stockbrokers and depository participants to encourage clients to update 'choice of nomination' by communicating through SMS and email every fortnight.
Earlier, the date to comply with this rule was March 31 last year. Post which, SEBI had given a year’s extension till March 31, 2023. Now, the deadline stands extended yet again by six more months.
You can add your nominee to your demat account by following these easy steps.
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