How to register nominee in a demat account

All demat account holders must register nominees before 31 December 2023 to ensure a smooth transfer of assets to their legal heirs in the event of their death. Failure to adhere to this mandate may lead to restrictions on the account. Here is how one can carry out the nomination process.

Eligibility and nominee selection
To be eligible to nominate, the individual should be a sole or primary account holder of the demat account. Joint holders can also nominate. However, nomination is not possible in non-individual demat accounts.


Nominees
Nominees can be individuals, including family members. It is advisable to communicate with the chosen nominee to avoid disputes in the future.

Nomination process
A nomination form can be obtained from the DP (depository participant) or downloaded from its website. The individual must provide his personal information and demat account number. Information regarding the nominee should include name, any existing relationship with the account holder, date of birth, and address. The percentage of nomination should also be mentioned in the nomination form in case of multiple nominees.

Online nomination
Nomination can also be done online by visiting the DP or depository website. In this case, nomination details can be filled online and verification can be done using the Aadhaar-based OTP authentication process.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.