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

Capital markets regulator SEBI on Thursday extended the deadline till March next year for existing trading and demat account holders to provide choice of nomination or opt out of nomination.

In July 2021, SEBI asked all existing eligible trading and demat account holders to provide choice of nomination on or before March 31, 2022, failing which the trading and demat accounts would have been frozen for debits.

On the basis of representations received from various stakeholders, it has been decided that the provision “with respect to freezing of accounts shall come into force with effect from March 31, 2023 instead of March 31, 2022,” SEBI said in a circular on Thursday. It further said re-submission of nomination details would be optional for the existing investors who have already provided the nomination details prior to the circular issued in July.

Further, existing investors who have not submitted nomination details till date and intend to submit their nomination or opt out of nomination (not to nominate any one) may also be allowed to do so by way of two factor authentication login on the internet trading platform for stock brokers/depository participants providing such service.

The details previously required like mobile number, e-mail ID and identification details of the nominee/ guardian of the minor nominee have been made optional.

Investors who are opening new trading and demat account from October 1 have the choice of providing nomination or opting out of nomination through a declaration form.