Steps to Register Nominee in Demat Account

Adding a nominee is important in Demat accounts because it secures your funds. These funds are to be transferred promptly without any hindrance upon the death of the account holder. This can be done online or offline. Therefore, by adding a nominee you can prevent complications for them to claim your earnings ensuring efficient management of assets. In this blog, you will understand how to add a nominee to your account online and offline along with why it is important to add one. So let’s dive in.

Key Highlights

• Demat account nomination guarantees ease in funds transfer by simply adding a nominee to your account upon your demise easing out the claim procedures.
  
• You may include a nominee online by connecting with an Aadhaar and completing the authentication routine or offline by giving an application with paperwork.
  
• Up to three candidates can be named by you and you can also determine the ratio or percentage of securities that will be given to each nominee.
  
• Although it’s not compulsory, a nominee provides an important alternative for controlling the funds and managing them securely.

How to Add a Nominee in a Demat Account Online

You may be wondering about the process of appointing a nominee to my Demat account?. The following are the steps to register a nominee to a Demat account:

Step 1: Log in to your account

Visit the website or application of your service provider and log in to your account by filling in the credentials. 

Step 2: Select Profile

Once you have entered the interface, navigate to your profile option. There you will be able to find options to modify certain details.

Step 3: Find the Nominee Option

You can scroll down or click on the edit details section. This is where the ‘Add Nominee’ section is usually available. 

Step 4: Enter Nominee Details

Once you have found the add nominee section, you need to enter the details of the nominee like name, age, etc.

Step 5: Upload Required Documents

Your next step will be to upload the documents required. These include the nominee’s Aadhar Card, PAN card, etc. 

Step 6: Distribute Share

If there is more than one nominee, you will have to designate a percentage of share to each of them. However, if you have a single nominee, then the whole share goes to him/her. 

Step 7: Review and Confirm

Cross check the information submitted by you including the details and share of the nominee, then press the confirm button to process your request.

How to Add a Nominee in a Demat Account Offline

The following is the process to add a nominee to your account offline:

Step 1: Visit the Depository Participant

You need to begin by visiting your DP’s branch office. This can either be a bank or brokerage firm. 

Step 2: Request for Nomination Form

Then you need to request for the “Nominee Addition Form.”

Step 3: Fill in the Details

You need to provide the required information about the nominee. This includes their name, relationship to you, and contact information. 

Step 4: Documentation

The next thing you need to do is attach the supporting documents. This can include a photocopy of you and your nominee’s Aadhar card, PAN card, passport, etc. 

Step 5: Review the Form

Once you are done filling out the form and attaching all the required documents, you should review the form and rectify errors if any. 

Step 6: Submit the Form

If you are satisfied with the form, submit the form to your DP.

Step 7: Receive Acknowledgement

After you have submitted the form, you will receive an acknowledgement receipt from the DP. This receipt should be kept safe as it is proof that your request has been submitted.

Step 8: Wait for Confirmation

After that, the DP will process your request and update your nominee details in your Demat Account. It can take a few days for the completion of the process. Usually, the confirmation is received via SMS or mail once the process is completed. 

Step 9: Verify the Update

You can follow up with your DP office to ensure the nominee has been successfully added to your Demat account. Another way to verify is to check your account statement or contact customer support.

Important Points to Consider While Adding a Nominee to the Demat Account

Adding a Demat account nominee is not mandatory but is a vital backup. For example, imagine you went through difficulties and couldn’t leave anything for your loved ones. Hence, adding a nominee to your Demat account is recommended.

• It is not compulsory to have only one nominee. You can have more than one, but the maximum limit depends on one organization. Most of the organisations provide the facility of having up to three nominees for your Demat account.

• The current Demat account holder can choose a ratio or percentage of securities transferred to each nominee account. For example, if you name a single nominee, the securities will get transferred to their account. Whereas, if you choose to have more than one nominee, the securities of the Demat account holder, would be distributed among them.

• The Demat account holder is the complete owner of all the funds and securities. He/she has the right to choose whether or not to name a nominee. Therefore, it is recommended from a professional point of view, however, appointment of a nominee is not mandatory. The nominee chosen by the account holder can be changed or removed from the Demat account as per their liking.

Why is it Important to Add a Nominee to the Demat Account?

There are several factors that make it important to add a nominee to your Demat account. Let’s discuss them in brief:

• It enables a smooth transfer of securities, avoiding legal complexities and delays. This makes sure that your belongings get transferred well without any complications.

• Such arrangements give one an assurance that their investments will be taken care of even when they are no longer around.

• Selecting a nominee eliminates the need for your family to go through legal proceedings. Rather, your heirs get the authority to claim your holdings as inheritance.

Thus adding a nominee protects your investments and ensures their transfer easily to the chosen beneficiaries

Conclusion

When you have added a nominee, and your DP possesses their information, funds may be disbursed directly into their account following verification. However, if no one has been appointed as an heir, then the documentation process can become tiresome for the family of the demat account owner. This can make the process of claiming these securities complex. Therefore, always include nominees appropriately to avoid unwanted situations and facilitate seamless claim procedures.

FAQs on Demat Account Nomination