Sebi extends deadline to add nominee for demat accounts till Dec 31
The move is aimed at helping investors to secure their assets and pass them on to their legal heirs
- Sep 26, 2023,
- Updated Sep 26, 2023 6:48 PM IST
All individual demat account holders have time till December 31 to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their demat accounts will be frozen, and they will not be able to redeem their investments. The earlier deadline was September 30.
This mandate applies to both new as well as existing investors, according to the Securities and Exchange Board of India (Sebi).
The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.
Under Sebi's rule, new investors must either nominate their securities or formally opt out of nomination through a declaration form when opening trading and demat accounts.
In July 2021, the Securities and Exchange Board of India (Sebi) had asked all existing eligible trading and demat account holders to provide choice of nomination on or before March 31, 2022, failing which the trading and demat accounts would have been frozen for debits.
Later, this was extended by one more year till March 31, 2023.
Market experts are of the view that many investment accounts in the past have been opened without nominating anyone to whom the assets should be transmitted in case something happens to the account holders, reported PTI earlier this week.
This means that the rightful heirs had difficulty in getting the assets transmitted to them due to the hassles of different kinds of documentation requirements.
All individual demat account holders have time till December 31 to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their demat accounts will be frozen, and they will not be able to redeem their investments. The earlier deadline was September 30.
This mandate applies to both new as well as existing investors, according to the Securities and Exchange Board of India (Sebi).
The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.
Under Sebi's rule, new investors must either nominate their securities or formally opt out of nomination through a declaration form when opening trading and demat accounts.
In July 2021, the Securities and Exchange Board of India (Sebi) had asked all existing eligible trading and demat account holders to provide choice of nomination on or before March 31, 2022, failing which the trading and demat accounts would have been frozen for debits.
Later, this was extended by one more year till March 31, 2023.
Market experts are of the view that many investment accounts in the past have been opened without nominating anyone to whom the assets should be transmitted in case something happens to the account holders, reported PTI earlier this week.
This means that the rightful heirs had difficulty in getting the assets transmitted to them due to the hassles of different kinds of documentation requirements.