Nomination in a Demat account is an essential feature that ensures your investments are securely transferred to a designated individual in the event of unforeseen circumstances. Adding a nominee to your Demat account streamlines the succession process, preventing legal complications for your loved ones. Here’s a detailed guide on how to add nominee in Demat account online, its benefits, relationship with nominee and answers to common queries.
What Is a Nominee in a Demat Account?
A nominee in a Demat account is a person you designate to inherit your securities, such as shares, mutual funds, or bonds, in case of your demise. The nomination ensures a smooth transfer of holdings without the need for extensive legal formalities.
Benefits of Adding a Demat Account Nominee
- Ease of Transfer: Nomination eliminates the need for a will or court approval for asset transfer.
- Legal Security: It ensures that your investments reach the intended person securely.
- Avoidance of Disputes: Prevents disputes among family members regarding asset inheritance.
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- 20 Lac+ unique clients
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How to Add Nominee in Demat Account Online
The process of adding a nominee is straightforward and can be completed online. Below is a step-by-step guide:
1. Login to Your Trading Account
- Visit your Depository Participant’s (DP) website or mobile application.
- Log in using your credentials.
2. Access the Nomination Section
- Navigate to the “Nomination” or “Profile” section of your account.
3. Provide Nominee Details
- Enter the nominee’s name, relationship with nominee, date of birth (if a minor), and address.
- Specify the percentage of holdings if there are multiple nominees.
4. Upload Required Documents
- Upload proof of identity (e.g., Aadhaar, PAN) of the nominee.
5. Submit the Request
- Verify the details and submit the nomination request.
- Some DPs may send an OTP for confirmation.
6. Receive Confirmation
- After verification, you’ll receive a confirmation of the successful addition of the nominee.
Nomination in Offline Mode
For those preferring offline processes, follow these steps:
- Visit your DP’s branch and request a “Nomination Form.”
- Fill in the nominee’s details, including the relationship with nominee and share allocation (if applicable).
- Submit the form along with the nominee’s identity proof.
- The DP will process your request and provide confirmation.
Relationship With Nominee And Other Key Points to Remember
- Relationship with Nominee: The nominee can be any individual, including a family member, friend, or legal guardian (for minors).
- Multiple Nominees: You can appoint multiple nominees and define the percentage of holdings for each.
- Updating Nominees: Nominee details can be modified or deleted at any time.
Conclusion
Understanding how to add nominee to your Demat account is a simple yet crucial step for securing your investments. It ensures that your holdings are passed on seamlessly, offering peace of mind to both you and your loved ones.
Frequently Asked Questions – FAQs
1. Can I add multiple nominees to my Demat account?
Yes, you can add multiple nominees. Ensure you specify the percentage of holdings for each nominee.
2. Is it mandatory to add a nomination in Demat account?
No, it’s not mandatory. However, it is highly recommended to avoid complications in the future.
3. What documents are needed to add a nominee?
You need the nominee’s identity proof (e.g., Aadhaar, PAN) and, if applicable, proof of guardianship for minors.
4. Can I change demat account nominee later?
Yes, you can update or remove a nominee anytime by submitting a request online or offline.
5. How long does it take to update the nomination in demat account?
The process usually takes 2-3 working days after submission and verification.
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account