The deadline for current demat account holders to choose their nominees or explicitly opt out of nomination through a declaration form was extended by the capital markets regulator Securities and Exchange Board of India (Sebi) on Tuesday by three months, to the end of December.
The regulator has also made it voluntary to submit a “choice of nomination” for trading accounts in an effort to make doing business easier. Previously, eligible trading and demat account holders had until September 30 to submit their choice of nomination.
The action aims to assist investors in protecting their assets and transferring them to their legitimate heirs.In an effort to make conducting business easier, the filing of “choice of nomination” for trading accounts has been made voluntary based on comments from exchanges, depositories, brokers’ groups, and other stakeholders.
The deadline for submitting a “choice of nomination” for demat accounts will now be December 31, 2023, according to a circular from Sebi. Additionally, Sebi has allowed physical security holders until December 31 to provide their PAN, nomination, contact information, bank account information, and specimen signature for their associated folio numbers.
The Sebi requested a nomination from each qualified account holder on or before March 31, 2022 in July 2021. This was later extended again, first until March 31, 2023, and then again until September 30, 2023.
Conclusion:-
Capital markets regulator Sebi has extended the deadline for demat account holders to choose nominees or opt out of nomination through a declaration form by three months to the end of December. The regulator has also made it voluntary to submit a “choice of nomination” for trading accounts to make business easier. Eligible trading and demat account holders had until September 30 to submit their choice of nomination. The deadline for submitting a nomination for demat accounts is December 31, 2023. Sebi requested nominations from qualified account holders on or before March 31, 2022, which was extended twice, first until March 31, 2023, and then again until September 30, 2023.
