Secure Your Investments by Adding a Nominee to Your Demat Account

A Dematerialized (Demat) account is used for holding a security in digital form. This demat account helps investors to safeguard their security from risk of theft and physical damage. In India, Demat accounts are maintained by two Depositories namely National Security Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

Nomination in Demat Account is a facility that would enable a demat account holder(investor) to nominate a person (nominee) on his behalf, to claim demat account securities held by the demat account holder in the event of demise of the demat account holder. 

As per updated mandatory SEBI guidelines, the last date to add nominee in demat account is June 30, 2024. 

The main objective for nomination in demat accounts is to help investors to safeguard their assets and transfer them to their legal heirs.

How to Add a Nominee to Demat Account?

• Visit Enrich Money’s official website. login to https://orca.enrichmoney.in or https://kycportal.enrichmoney.in/Kyc/Login

• Enter login credentials like ‘Client code’ and ‘Password’

• Once authenticated, the user will be navigated to Orca’s home page. To add nominee details , In the top right corner, click on the ‘user icon’. Then select the ‘User profile‘ menu.

• The user will be navigated to the user's personal details page. In the page, select ‘Nominee Details’ section , then click on ‘ Add Nominee’ option

• Users will be navigated to a page where users can enter nominee details (Nominee’s name, Nominee’s birth date, Nominee’s PAN card number, Relationship with your nominee, Percentage user wanted to share and Other information) and submit.  

• If required, users can add further one or two nominees, by clicking on the add button.

• Once all the nominee details are submitted, the user needs to electronically authenticate and provide OTP for successful addition of the nominee.

As per SEBI guidelines, a demat account holder can nominate a total of three nominees.  A percentage of share of the demat account can be assigned to each nominee additionally. The total percentage of share of all three nominees should be equal to 100%.

As per SEBI guideline, nomination facility is made voluntary for trading accounts.

Nominee Eligibility

Person selected as a nominee should fulfil the following criteria

• The nominee should be a relative of the demat account holder.

• A minor can also be a nominee, provided their guardian details must be provided.

• Any non-individual like HUF Karta, corporation, society cannot be a nominee. Only individual people connected as relatives can be nominated.

What Documents Are Required to Add Nominee Details?

No specific document is required to add nominee details. But if the user wished to add nominee details in offline form, user has two options to add Nominee to Demat Account

A nominee can be added in two ways , 

1. Providing nomination in a prescribed format.

2. Providing nomination through a prescribed declaration form.

How To Check Nominees in Demat Account?

Users can check for nominee details by logging into Enrich Money’s Orca app. The user needs to visit their profile page, under the nominee details section, nominee details would be displayed.

Benefits of Nomination

• Enables convenient account transfer upon holder's demise

• Easy procedure

• Doesn't require additional documentations

• Can choose up to 3 nominees

• Easy to add, change or replace nominees at any time.

• Nomination is also available online

Points To Remember When Adding a Nominee to Demat Account

• The demat account holder should be a joint or single account holder. 

• Entities like corporate bodies, partnership firms, power of attorney holders, HUF's Karta do not qualify for these procedures.

• In case of joint accounts, both the account holders must sign the nomination form.

• Once the nominee is added, inform the nominee regarding the necessary document that might be needed in future. 

• In case of changes in nominee details, update the nominee information immediately through your brokerage to the depository participant.

• Once you have added a nominee, it is very crucial to decide upon his rights.

Conclusion

The importance of adding nominee details in demat account within June 30,2024 as per SEBI mandatory guidelines is basically to aid the demat account holder to seamlessly transfer his assets to his legal heir during the holder's unfortunate circumstances. This process of adding nominee details would save time and stress and also keeps the demat account holder's family financially secure. Interested in opening a demat account to invest in the stock market? Enrich Money provides the lowest brokerage charges demat account for budding investors and traders. You can add nominee details easily by following this article

Frequently Asked Questions

Why is it needed to add a nominee to the Demat account?

As per SEBI mandatory guidelines,  demat account holder must nominate an individual for his demat account. 

What is the last date to add nominee details in the demat account?

As per SEBI mandatory guidelines, the last date to add nominee details in demat account is June 30,2024. 

What would happen to the demat account if nominee details are not added within the stipulated date?

The demat account would be frozen if the holder fails to add nominee details within the stipulated date.

How many nominees can I add to my Demat account?

A Demat account holder can nominate up to three nominees and assign a percentage of the share of the account to each nominee.

Is adding nominee details mandatory for trading accounts?

As per SEBI guideline, nomination facility is made voluntary for trading accounts.