All mutual fund investors must take note that December 31, 2023 is the last day for you to add and update the nominee in your mutual fund and demat account, according to the rules updates by the Securities and Exchange Board of India (SEBI).
SEBI has made it mandatory for all the demat and mutual funds account holders to either update and add or opt out of the nominations by December 31 this year. After this date, no new changes will be entertained.
The regulatory body will have the power to freeze debits from an individual’s account if they fail to make their nomination declarations by the deadline. This means that account holders will not be able to make any withdrawals from their mutual funds account.
Not meeting the deadline also means that investors will not be able to utilise the funds in their demat accounts for trading purposes. If one has already submitted their nominee declaration, they are not supposed to do it again.
How to add nomination in demat account
- Visit the official portal of NSDL, which is nsdl.co.in.
- Click on the ‘Nominate Online’ option on the homepage.
- You will be redirected to a new page.
- On the new page, you will be required to provide your DP ID, client ID, PAN, and OTP.
- Click on either of the two options – ‘I wish to Nominate’ or ‘I do not wish to nominate.’
- If you are adding a nominee, you will be required to enter their personal details on a new page.
- Enable the checkbox for the eSign Service Provider’s page.
- Verify the details with the OTP to complete the process.
Adding the nominee is essential for the safety of your funds in case of your demise. The process should ideally be completed when you are opening your demat account. In case there is no nominee in your account, your funds could be frozen or subjected to a lengthy transfer for your family members.