SEBI gives a year more to existing trading, demat account holders to provide choice of nomination

SEBI, the capital markets regulator, extended the deadline for existing trading and demat account holders to provide a choice of nomination or opt out of nomination until March of next year.

SEBI requested in July 2021 that all existing eligible trading and demat account holders provide a choice of nomination on or before March 31, 2022, or the trading and demat accounts would be frozen for debits.

In a circular issued on Thursday, Sebi stated, “On the basis of representations received from various stakeholders, it has been decided that the provision relating to account freezing shall enter into force with effect from March 31, 2023 rather than March 31, 2022.”

Sebi also stated that re-submission of nomination details will be optional for existing investors who

The previously required details, such as the nominee’s mobile number, e-mail ID, and identification details of the minor nominee, have been made optional.

Investors who open new trading and demat accounts on or after October 1 have the option of providing nomination or opting out through a declaration form.

Furthermore, existing investors who have not submitted nomination details to date and intend to do so or opt out of nomination (not to nominate anyone) may be able to do so through two factor authentication logins on the internet trading platform for stock brokers/depository participants who provide such service. The previously required details, such as the nominee’s mobile number, e-mail ID, and identification details of the minor nominee, have been made optional.