If the nomination process for the demat account is not done.. the concerned demat account will be frozen. That means it becomes useless. It is known that demat account is mandatory for trading in stock markets. The number of people who invest in stock markets is also estimated based on the demat account number. Once it is frozen, buying, selling and long-term investments in stocks will not be possible.
So.. it is mandatory to add the nominee or give a declaration of non-adoption. This is brought in keeping in mind the security of the investor’s family. If the nominee is not added.. at the time of sudden death of the investor.. the amount in it will not belong to anyone. If a nominee is added.. that person will get that amount in the form of percentage. So.. Traders must keep this in mind. Stock market brokerages including SEBI are advising investors who have not yet done this process to complete it soon.
Now let’s know how to add nominee to demat account.
- You need to login your Demat account. It will also be on the website of the brokerage you have taken. (For example Angel Broking, Upstox, Zerodha etc..)
- Select My Nominees in the profile segment. It will redirect you to nominee details page. If there is already a nominee it will appear in the records. There is a chance to select maximum three people.
- There you have to select Add Nominee or Opt-Out.
- Nominee details should be entered. Nominee ID proof is also required to be uploaded.
- After uploading these documents nominee share percentage should also be entered. That means you have to specify the percentage you want to pay to the nominee. Maximum 100 percent.. If more than one person chooses they have to share the percentage.
- e-Sign on the document through Aadhaar OTP verification.
- Your nomination add process will end.
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