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    How to Add Nominee to Demat Account

How to Add Nominee to Demat Account

How to Add Nominee to Demat Account
  • Published Date: June 20, 2025
  • Updated Date: July 17, 2025
  • By Team Choice

Opening a Demat account holds digital records of your shares and securities, making it a crucial component of your financial portfolio. However, have you ever wondered what happens to these investments in case of an unforeseen event? That’s where nominating a beneficiary becomes essential. Appointing a nominee ensures your loved ones can seamlessly inherit your assets without legal hurdles.

If you're still uncertain about how to add a nominee to your Demat account, this step-by-step guide will walk you through both online and offline methods. Additionally, it will explain eligibility criteria, outline regulations, and highlight why nomination can safeguard your financial legacy.

What is a Demat Account?

A Demat (Dematerialisation) account serves to hold shares and other securities electronically, removing the need for physical certificates. This account enables faster transactions, minimal paperwork, and increased security in managing investments. To invest or trade in stocks and mutual funds, having a Demat account is essential for all investors.

Who is a Nominee in a Demat account?

A nominee is the person you designate to inherit the holdings in your Demat account if you pass away. This person acts as a custodian of your assets, ensuring they are managed and transferred as intended.

In the context of a Demat account, nomination is the process of designating an individual to inherit your securities in the event of your demise. This provision simplifies the transmission of shares and helps prevent your investments from going unclaimed. It also eliminates the need for your family to undergo time-consuming legal procedures to claim the assets.

Without a nominee, even close family members may struggle to trace and access your investments, especially if you haven't maintained detailed records. Naming a nominee across all your investment accounts ensures your financial legacy is preserved and reaches the right hands.

Step-by-Step Guide: How to Add a Nominee to Your Demat Account

Managing your investments responsibly includes ensuring they are passed on without legal hassle. Adding a nominee to your Demat account is one of the most crucial tasks.

Let’s take a look at how you can add a nominee to your Demat account through both online and offline processes:

How to Add Nomination in Demat Account Online?

The step-by-step process to add a nominee online is fast, secure, and paperless.

  • Go to Nomination Section: Log in to your broker’s website or app. Find ‘Profile’ or ‘Account Settings’ to manage nominees.
  • Start the Nomination: Click on ‘Add Nominee’ and decide how to split your holdings.
  • Fill Nominee Details: Enter their name, date of birth, PAN, relationship, and share percentage (total must be 100% if multiple).
  • Review & Confirm: Check the details carefully and proceed to verify.
  • E-sign the Form: Use your Aadhaar-linked OTP to digitally sign and submit.
  • Get Confirmation: You’ll receive an SMS or email once your nominee is successfully added.

How to Add Nomination in Demat Account Offline?

If you prefer the traditional paper-based process, here’s how you can nominate someone manually:

1. Get the Nomination Form: Visit your Depository Participant (DP), the entity where your Demat account is held, and request the nomination registration form.

2. Fill in the Required Details: Please fill in the form with the nominee's required details, including their:

  • Name and address
  • Date of birth
  • Your Demat account number
  • Share percentage (if applicable)

3. Attach Supporting Documents: Along with the form, include necessary documents such as identity and address proof for yourself and, if required, for the nominee. Acceptable documents include PAN card, Aadhaar card, or passport copies.

4. Submit to the DP: Hand over the completed form and documents in person or as per your DP’s submission process (some may accept postal submissions). Your DP may also ask you to sign in front of an official for verification.

5. Get Acknowledgement: After submitting, you’ll receive a receipt as proof that your nomination request has been accepted.

6. Update Confirmation: Once the DP processes your request, the nominee’s information will be updated in your Demat account records. You may receive a notification or account statement reflecting the changes.

Why Nominating Someone for Your Demat Account is Essential?

Appointing a nominee provides financial continuity and security to your loved ones. In the event of your passing, the nominated person can claim the securities without facing legal barriers or court proceedings. This helps prevent unnecessary legal expenses and delays, ensuring your investments are promptly transferred and not left dormant demat account or unclaimed.

Additionally, it acts as a preventive measure against possible conflicts among heirs by clearly indicating your intention regarding who should receive the assets.

Who Can Be Appointed as a Nominee?

Before learning how to add a nominee to your Demat account, it's important to understand who is eligible for this role. The nominee doesn’t have to be related to the account holder, but must meet a few basic criteria set by Indian regulations:

  • Age Factor: Anyone aged 18 or older can be nominated. Minors can also be named, but a guardian must be assigned to manage the account until the minor turns 18.
  • Nationality: The nominee must be an Indian resident to legally inherit and hold securities.
  • Relationship Flexibility: There are no restrictions on who can be nominated - family members, friends, or even trusted associates are all valid choices.
  • Nomination Limit: Up to 10 individuals can be nominated per Demat account, with each nominee assigned a specific percentage of holdings that adds up to 100%.
  • KYC Compliance: Nominees must meet standard KYC (Know Your Customer) requirements, submitting valid identification and address documents like a PAN card, Aadhaar, or passport.
  • Consent & Awareness: While not legally mandatory, it’s advisable to inform and obtain the nominee's consent to avoid confusion during transmission of assets.
  • Across Accounts: A single person can be nominated in multiple Demat accounts, even if held with different brokers.
  • Flexibility to Update: Account holders have the flexibility to update or revoke nominations at any time by submitting a new request.

Note: Nominees must be individuals. Entities like companies, trusts, or HUFs (including the Karta) cannot be nominated.

Key Highlights of SEBI’s Updated Nomination and Transmission Guidelines (2025)

As per the latest SEBI circular issued on January 10, 2025, several changes have been introduced to simplify and streamline the nomination and asset transmission process. Here’s a breakdown of the revised provisions:

1. Maximum Number of Nominees Increased:

Investors are now allowed to appoint up to 10 nominees (earlier 3) for each Demat account or mutual fund folio. This enhancement offers greater flexibility for those wishing to divide their holdings among multiple beneficiaries.

2. Simplified Process for Joint Holders:

In accounts held jointly, the surviving account holder will only be required to submit a copy of the deceased holder’s death certificate. No additional documents like KYC forms, undertakings, or indemnity bonds will be needed from the survivor.

3. Power of Attorney (POA) Restrictions:

Individuals acting under a Power of Attorney are not permitted to add nominees on behalf of the investor. Only the actual account holder(s) can register nominations.

4. Options for Nominees After Transmission in Joint Holdings:

When assets are transmitted due to the death of a joint holder, the nominated individuals may choose either to:

  • Continue as joint holders with the remaining nominee(s), or
  • Separate their share by opening individual accounts or folios for their respective entitlements.

5. Nominee Authorisation in Case of Physical Incapacity:

For single-holder accounts, SEBI now permits investors to authorise one of the registered nominees (excluding minors) to manage the account if the account holder becomes physically incapacitated but retains legal capacity. This mandate can:

  • Grant authority to operate the account,
  • Define the portion (as a percentage or fixed amount) that the nominee may encash, and
  • It can be revised or revoked any number of times, offering complete flexibility.

6. Simplified Transmission Requirements:

In the event of the account holder's death, transferring assets to the nominee(s) will now require only three key documents:

  • A self-attested copy of the death certificate of the deceased,
  • KYC verification or revalidation for the nominee(s),
  • Creditor release confirmation (only if the account has outstanding loans secured by pledged assets).

Importantly, no additional declarations, notarised affidavits, indemnities, or undertakings can be demanded by depository participants or other regulated entities. Any legal disputes regarding ownership or claims must be resolved between the involved parties; the intermediaries will no longer be held responsible for such conflicts.

Benefits of a Nominee in a Demat Account

Appointing a nominee to your Demat account is not just a formality; it’s a vital aspect of sound financial planning. Here’s why every investor should seriously consider this step:

  • Easy Transfer of Assets: A nominee enables quick transfer of securities without legal delays or court procedures.
  • Prevents Family Disputes: Clearly identifies your chosen beneficiary, avoiding conflicts or multiple claims.
  • Avoids Unclaimed Investments: Without a nominee, your assets risk being transferred to the Investor Education and Protection Fund (IEPF) if no claims are made.
  • Complete Control Over Distribution: Nominate up to 10 individuals, set percentage shares, and update anytime as your wishes change.

Things to Keep in Mind Before Adding a Nominee to Your Demat Account

  • For new investors, nominating a beneficiary is compulsory, unless it's a joint Demat account or mutual fund portfolio.
  • Ensure the nominee’s full name, date of birth, and relationship are entered exactly as per official documents.
  • The nominee is only a custodian, not the legal heir. Legal heirs can still claim rights if contested in court.
  • If your nominee is a minor, you must appoint a guardian to manage the account until the nominee reaches legal age.
  • Review and revise your nomination after major life changes, like marriage, divorce, or the birth of a child, to ensure it aligns with your current wishes.
  • If nominating multiple people, ensure the total distribution adds up to 100%.
  • Entities like companies, trusts, or societies cannot be nominated; only individuals are eligible.

Final Thoughts

Adding a nominee is not just a regulatory requirement; it’s an act of responsibility. It's fast, free, and safeguards your loved ones from future uncertainties. Whether you prefer digital tools or the traditional route, now you know exactly how to add a nominee to your Demat account without any hassle. Act today, and give your financial planning a strong foundation for tomorrow.

Frequently Asked Questions (FAQs)

What is the last date to add a nominee to a Demat account?

While SEBI had previously set June 30, 2024, as the last date to add a nominee in a Demat account or opt out, failing which Demat accounts faced the risk of being frozen, the latest update (as of June 2024) has eased this restriction for existing account holders. Nonetheless, it remains strongly recommended to complete the nomination process to ensure regulatory compliance and safeguard your investments.

Is it mandatory to add a nominee to a Demat account?

It's now mandatory for new investors to provide a nominee if they hold a mutual fund or Demat account in their single name. For joint account holders, adding a nominee remains an option but isn't compulsory.

Can you appoint more than one nominee for a Demat account?

Yes, you can name multiple nominees, up to a maximum of 10, and also specify the percentage of shares each nominee will receive.

What is the process to update or remove a nominee from my Demat account?

You can update nominee details online via your broker’s platform or submit a physical modification form offline.

How can I check my demat account nominee?

You can check your nominee details by logging into your demat account (via your broker’s platform, CDSL Easiest, or NSDL Speede) and navigating to the Nomination section under account settings. If no nominee is added, you may submit a nomination request.

How can I transfer my demat account to a nominee?

In the event of the account holder's demise, the nominee can claim the securities by providing the required documents to the depository participant.

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