Declaring the dependent: Mutual fund and demat accounts’ nominee updation ends December 31

Nomination pending: Are you yet to add a nominee to your mutual funds and demat accounts? The December 31 deadline set by the Securities and Exchange Board of India (SEBI) is approaching. This crucial requirement applies to both new and existing investors, emphasising the need to nominate a beneficiary or opt out by the specified date, say experts.

For those involved in both stock and mutual fund investments, having a demat account is essential. The SEBI directive makes it obligatory to either add a nominee or opt out by the end of December 31.  Failure to comply with this directive carries serious consequences, as outlined by SEBI, resulting in the freezing of accounts and folios.

Experts emphasise the significance of not neglecting to appoint a nominee. "Such oversight may leave one's financial legacy in a state of ambiguity. Proactively appointing nominees is not just wise but also a strategic move to ensure a seamless transfer of assets, safeguarding financial interests for future generations," said Agam Gupta, Executive Director, Share India FinCap.

Ready to nominate? Here's how

For demat account:

To add a nominee to your demat account, visit NSDL's portal at nsdl.co.in. On the homepage, select the 'Nominate Online' option, and a new page will prompt you for your DP ID, client ID, PAN, and OTP. After entering these details, you'll be presented with the options 'I wish to Nominate' and 'I do not wish to nominate.' Opting to add a nominee will lead you to a page where you can provide the nominee's details and e-sign using Aadhaar with OTP on the registered mobile number.

For mutual fund folio:

For mutual fund folios, nomination can be done at the time of investment or later. To update mutual fund nominations online, visit the Mutual Fund house's official portal or the NSDL website. Up to three nominees can be added, and the nomination form, signed by all unit holders, should specify the share to be given to each nominee. If the investment is made through a demat account, the nomination details submitted with the depository will also apply to the mutual fund holding.