Demat Account: How to add a nominee online and offline? Here’s a step-by-step guide

Demat account holders are advised to add nominees to their demat accounts. This precautionary step ensures that in the event of the account holder's demise, the nominated individual can access the securities and assets held in the account without encountering any legal hassles or delays.

Designating a nominee for your investments is crucial as it ensures a smooth transition of assets to your loved ones in the event of your absence. Failure to nominate someone can lead to complex legal processes for your beneficiaries, delaying or complicating their access to the funds. In some unfortunate cases, the money may remain unclaimed indefinitely. Therefore, adding a nominee is a proactive step to safeguard your investments and provide financial security to your family in your absence.

Adding a nominee to your demat account is a straightforward process that can be completed online as well as offline.

Read here: Can I participate in an IPO without a demat account?

Here's how you can add a nominee to your demat account online:

- Visit the official portal of NSDL (nsdl.co.in) or your brokerage account.

- Click on the 'Nominate Online' option on the homepage or settings page in case of a brokerage account.

- Provide your DP ID, Client ID, and PAN on the new page.

- Authenticate your identity through OTP.

- If you wish to nominate, select 'I wish to Nominate'. If not, select 'Opt out'.

- Provide complete details of your nominee on the next page.

- Verify/authenticate the nomination details through OTP.

- Complete the Aadhaar eSign on the Protean eGov page.

- Submit the OTP received to finalise the process.

Once completed, you will receive final confirmation on your computer screen.

Ensure that you provide accurate information and follow the instructions carefully to successfully add a nominee to your demat account online.

Read here: Can I link multiple bank accounts to my demat account?

To nominate someone to your demat account offline, you need to follow these steps:

- Contact your depository participant (DP) and request a nomination form for your demat account.

- Complete the nomination form accurately and legibly. Provide details such as the nominee's name, address, relationship with you, and their share in the event of your demise.

- Sign the nomination form as per the signature recorded with your DP. Ensure that the signature matches the records held by the DP.

- Along with the nomination form, you may need to submit supporting documents such as proof of identity and address for both yourself and the nominee.

- Submit the filled-out nomination form along with the supporting documents to your DP. You may be required to submit the documents in person or through mail, as per the DP's requirements.

- Upon submission of the nomination form, your DP will provide an acknowledgment receipt. Keep this receipt for your records.

- After processing your nomination request, your DP will confirm the nomination by updating the details in your demat account.

It's important to review and update your nomination details periodically, especially in the event of any changes in your circumstances or relationships. Additionally, ensure that you inform your nominee about their nomination and provide them with relevant details regarding the demat account.

Read here: How to check demat account balance? Here are 3 ways

FAQs

Q: : What is a nominee in a demat account?

A: A nominee in a demat account is an individual designated to receive the securities held in the account in the event of the account holder's demise.

Q: Why should I add a nominee to my demat account?

A: Adding a nominee to your demat account ensures that your securities are transferred smoothly to the designated person in case of your unfortunate demise, avoiding potential complications for your heirs.

Q: Who can be a nominee in my demat account?

A: You can nominate any individual, including family members, relatives, or friends, as your nominee for your demat account. However, the nominee should be willing to accept the responsibility and should be of sound mind.

Read here: How to transfer shares from one demat account to another? A step-by-step guide

Q: Can I add multiple nominees to my demat account?

A: Yes, you can add multiple nominees to your demat account and specify the percentage share of each nominee in case of your demise.

Q: Can I change or remove a nominee from my demat account?

A: Yes, you can change or remove a nominee from your demat account at any time by submitting a revised nomination form to your DP. It's advisable to review and update your nomination details periodically or in the event of any changes in your circumstances or relationships.

Q: Is there any fee for adding a nominee to my demat account?

A: Some depository participants (DPs) may charge a nominal fee for adding or modifying a nominee. Check with your DP for their fee structure and any applicable charges.