Essential step for demat account security: know how to add nominated data
Illustration: Binay Sinha
A dematerialized or demat account allows you to hold shares and securities of the company electronically. You can hold securities such as stocks, mutual funds, bonds or exchange traded funds in a demat account.
People with demat accounts must nominate nominees. This ensures that in the event of the death of the account holder, the nominated person has smooth access to their assets without legal complications or delay. Up to three nominees can be added for one demat account.
Who is a nominee?
A nominee is a person who receives securities that are held in the event of the death of the account holder.
How to add nominee to demat account online
Visit the NSDL website and register for the nominee facility.
Authenticate using the custodian participant ID (DP ID), customer ID, PAN, and OTP.
Choose to nominate or unsubscribe from nomination.
If you choose nomination, enter and save the nominee’s details.
Verify nomination details using OTP authentication.
Complete the Aadhaar e-Sign process.
Submit the final OTP for confirmation.
It is essential to follow each step carefully to ensure the nomination process is successful.
How to add nominee to demat account offline
Contact your DP to request a nomination form.
Complete the nomination form accurately and include all necessary information about the nominee.
Sign the form according to the signature recorded with your DP.
Attach supporting documents such as ID and address for both you and the nominee.
Submit the completed form and supporting documents to your OP, according to their submission guidelines.
Receive confirmation of receipt from your DP upon submission.
Your DP will process the nomination request and update the details in your demat account accordingly.
First print: May 07, 2024 | 12:56 pm IST