Capital markets regulator SEBI had in 2021 extended the deadline for current holders of trading and Demat accounts to choose a nominee or opt out of nomination till March this year. All current eligible trading and Demat account holders were requested by Sebi in July 2021 to submit their choice of nomination by March 31, 2022, otherwise the trading and demat accounts would be frozen for debits.
Hence, with just over a fortnight remaining, Demat submit their choice of nomination if they don’t want their demat accounts to be frozen.
The provision “with relation to freezing of accounts shall come into existence with effect from March 31, 2023 instead of March 31, 2022,” Sebi had said in circular, citing comments from various stakeholders.
Additionally, it stated that existing investors who had already submitted their nomination information prior to the circular’s July release would not be required to do so again.
Further it added that current investors who have not yet submitted their nomination information but wish to do so or choose not to nominate anyone may be permitted to do so by using a two-factor authentication login on the internet trading platform for stock brokers and depository participants offering such a service.
The formerly compulsory information, including the nominee’s/identifying guardian’s information, email address, and mobile number, has been made optional. Investors who register new trading and Demat accounts after October 1 can elect to nominate someone or not by submitting a declaration form, it had added.