How to add nominees to Demat A/c and MFs before SEBI deadlines end: If you invest in mutual funds or hold a Demat account, then this information is for you. The Securities and Exchange Board of India (SEBI) has made it mandatory for all Demat and Mutual Fund (MF) account holders to add a nominee or opt out. SEBI has also fixed the deadline of 31 December 2023 for this. Therefore you should complete this important work on time. If you want, you can complete this entire process online sitting at home.
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What happens if the deadline is missed?
If you do not complete the work of adding a nominee or opting out of your Demat account or Mutual Fund account by December 31, 2023, your account may also be frozen. If the account is frozen, the account holder will not be able to make any withdrawal from his Demat account or Mutual Funds. If you have recently added your nominee details, you do not need to do so again. It is very important to make a nomination so that your family members get all the assets easily after you.
How to add a nominee to the Demat account?
You can do the work of adding nominees to your Demat account online. For this, you have to complete this process:
Go to the official portal of NSDL (nsdl.co.in).
Click on the 'Nominate Online' option on the homepage.
After this, a new page will open, on which you will have to provide your DP ID, Client ID, and PAN.
After giving this information, authentication will happen through OTP.
After authentication, if you want to make a nomination then click on 'I wish to Nominate'.
If you do not want to nominate then click on 'Optout'.
If you are nominating, you will have to give complete details of your nominee on the next page.
After this, you will have to verify/authenticate the nomination details through OTP by ticking the checkbox given on the page of the eSign Service Provider.
After submitting the correct OTP, you will be redirected to the Protean eGov page, where you will have to do an Aadhaar eSign.
After completion of the Aadhaar e-sign, you will get an OTP, on submitting which the process will be completed.
Once this process is completed properly, you will see the final confirmation on your computer screen.
How to nominate for Mutual Funds?
Nomination for mutual funds can be done at the time of starting investment or even later.
To make a nomination at the beginning itself, necessary details have to be given in the Nominee section of the application form.
Later, to make a nomination, the nomination form has to be filled out and submitted to the Investor Service Center or Registrar of the mutual fund.
You can make changes to the nomination whenever and as many times as you want.
You can nominate a maximum of 3 people in a mutual fund.
At the time of nomination, you can also tell how much share is to be given to each nominee. If you do not tell this, then every nominee will be considered an equal shareholder.
The nomination form must be signed by all the unit holders. If more than one person is a joint unit holder, the signatures of all persons must be there.
You can also download the standard nomination form by visiting the AMFI website.
If you have invested in a Mutual Fund through a Demat account and the units are held with the depository, then the nomination details submitted by the unit holder with the depository will be applicable to the mutual fund holding also.
Don't expect deadlines to be extended any further
The nomination deadline has been extended thrice so far by SEBI. Initially, this deadline was 31 March, which was first extended to 30 September and then 31 December. Therefore, you should complete this important work without waiting for this deadline to be extended further.
