Big update for demat account holders: Sebi extends deadline to add nominees to this date

In a move that is bound to help investors secure their assets and pass them on to their legal heirs, capital markets regulator Securities and Exchange Board of India (Sebi) on Tuesday extended the deadline for existing demat account holders to provide choice of nomination or formally opt out of nomination through a declaration form. SEBI has extended the earlier deadline of September 30 by three months to December-end.  

Additionally, submission of 'choice of nomination' for trading accounts has been made voluntary by the regulator as a move towards ease of doing business.

Earlier, the deadline for existing eligible trading and demat account holders to provide a choice of nomination was on or before September 30.

In a circular, SEBI said, "Based on the representations received from the exchanges, depositories, brokers' associations and various other stakeholders, submission of 'choice of nomination' for trading accounts has been made voluntary as a step towards ease of doing business."

"With respect to demat accounts, it has been decided to extend the last date for submission of 'choice of nomination' to December 31, 2023," Sebi added.

Further, Sebi has also given time till December 31, for physical security holders for submission of PAN, nomination, contact details, bank account details and specimen signature for their corresponding folio numbers.

"Based on the representations received from investors, Registrars Association of India and various other stakeholders, it has been decided to extend the last date for submission of PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers to December 31, 2023," it stated.

SEBI's advisory for stock exchanges, depositories, RTAs and listed companies

Additionally, SEBI also advised stock exchanges, depositories, RTAs and listed companies to — 

a) Take necessary steps to implement the provisions of its circular, including making necessary amendment to the relevant bye-laws / business rules / regulations / operational instructions, as the case may be;

b) Bring the provisions of its circular to the notice of their respective constituents and also disseminate this circular on their websites; 

c) Communicate to SEBI, the status of the implementation of the provisions of its circular; and,

d) Monitor the compliance of these guidelines.

In July 2021, the Securities and Exchange Board of India (Sebi) had asked all existing eligible trading and demat account holders to provide a choice of nomination on or before March 31, 2022. Later on, this deadline was extended by one more year till March 31, 2023 and again till September 30, 2023.

(With Agency Inputs)