Sebi Extends Nominee Deadline For Demat Accounts To December-end
The Securities and Exchange Board of India (Sebi) has announced a three-month extension until the end of December for existing demat account holders to make a choice regarding nomination or formally opt out of nomination by submitting a declaration form.
Furthermore, Sebi has made it optional for investors to submit their 'choice of nomination' for trading accounts, in a move aimed at simplifying business processes.
Originally, eligible trading and demat account holders were required to select a nomination option by 30 September. This extension is designed to assist investors in safeguarding their assets and ensuring their smooth transfer to their legal heirs.
Sebi issued a circular stating, "Based on feedback from exchanges, depositories, broker associations, and other stakeholders, the submission of 'choice of nomination' for trading accounts has been made voluntary to streamline business operations. Regarding demat accounts, the deadline for submitting the 'choice of nomination' has been extended to 31 December 2023."
Additionally, Sebi has granted physical security holders until 31 December to provide their PAN (Permanent Account Number), nominate beneficiaries, update contact details, provide bank account information, and submit their specimen signature for their corresponding folio numbers.
In July 2021, Sebi initially required all eligible trading and demat account holders to designate a nominee by 31 March 2022. This deadline was subsequently extended by one year to 31 March 2023, and then further extended to 30 September 2023.
