The time for existing demat account holders to decide on nomination or clearly opt out of nomination by filing a declaration form has been extended by three months, till the end of December, according to a Tuesday announcement from the Securities and Exchange Board of India (SEBI).
Previously, eligible trading and demat account holders had until September 30 to submit their choice of nomination. The capital markets authority has also made the “choice of nomination” application for trading accounts voluntary in an effort to make conducting business easier.
The action is intended to assist investors in protecting their assets and transferring them to their legitimate heirs.
According to feedback from exchanges, depositories, brokers’ organizations, and other stakeholders, the submission of a nominee’s choice for a trading account has been made voluntary in an effort to make doing business easier.
The final day for submitting a “choice of nomination” for demat accounts has been extended to December 31, 2023, according to a circular from Sebi.
Submission Of PAN
Physical security holders by December 31 have to submit their PAN, nomination, contact information, bank account information, and specimen signature for their relevant folio numbers, according to SEBI.
All current eligible trading and demat account holders were requested by SEBI in July 2021 to submit their preferred nominee by March 31 of the following year. This was later extended again, first until March 31, 2023, and then again until September 30, 2023.
When new investors create trading and Demat accounts, they are obliged to name their securities nominee or expressly deny nomination by completing a declaration form, in accordance with Sebi regulations.
