The Securities and Exchange Board of India (SEBI), announced on Tuesday that it has extended the deadline by three months, until the end of December, for existing demat account holders to make a choice regarding nomination or formally opt out of nomination by submitting a declaration form.
Earlier, the deadline for existing eligible trading and demat account holders to provide a choice of nomination was on or before September 30.
Additionally, submission of ‘choice of nomination’ for trading accounts has been made voluntary by the capital markets regulator as a move towards ease of doing business.
The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.
“Based on the representations received from the exchanges, depositories, brokers’ associations and various other stakeholders, submission of choice of nomination for trading accounts has been made voluntary as a step towards ease of doing business.
“With respect to demat accounts, it has been decided to extend the last date for submission of ’choice of nomination’ to December 31, 2023,” Sebi said in a circular.
Sebi has given time till December 31, for physical security holders for submission of PAN, nomination, contact details, bank account details and specimen signature for their corresponding folio numbers.
In July 2021, Sebi asked all existing eligible trading and demat account holders to provide a choice of nomination on or before March 31, 2022.
Later, this was extended by one more year till March 31, 2023 and again till September 30, 2023.
According to Sebi regulations, when new investors open trading and demat accounts, they are required to either designate their securities nominee or explicitly decline nomination by submitting a declaration form.