How to Add a Nominee in a Demat Account?

Adding a nominee to your demat account is an important step to ensure that your investments are smoothly transferred to your loved ones in case something unfortunate happens to you. It simplifies the process of asset transfer and provides peace of mind knowing that your financial assets will be handled according to your wishes. But how can you add a nominee to your demat account? Let’s break it down in easy steps.

What Is a Nominee in a Demat Account?

Before we jump into the process, it is good to understand what a nominee actually is. A nominee is a person you appoint to receive the securities in your demat account in the event of your death. This ensures a hassle-free transfer of your shares, bonds, or mutual funds to the person you trust.

Why Is It Important to Add a Nominee?

Why should one bother adding a nominee? It is quite simple: adding a nominee makes sure that your assets are passed on quickly and efficiently. Without a nominee, your family may face legal complications or delays in accessing your investments. It also avoids the burden of legal paperwork and court processes.

How Can You Add a Nominee to Your Demat Account?

Adding a nominee is straightforward. Here is how you can do it:

Online Method (For NSDL or CDSL Demat Accounts):

Log into your demat account: Whether you use NSDL or CDSL, you can easily access the option to add a nominee by logging in to your online trading or demat account.
Find the ‘Nominee’ section: Look for the ‘Nominee’ tab, usually under the ‘Profile’ or ‘Account Details’ section.
Enter nominee details: Provide the nominee’s name, relationship to you, date of birth, and other requested details.
Submit the details: Once you have entered the nominee’s information, confirm and submit. Some depositories may ask you to digitally sign a nomination form using an OTP (one-time password).

Offline Method:

Get a nomination form: If you prefer offline, you can request a nomination form (usually called Form SH-13) from your depository participant (DP) or download it from their website.
Fill out the form: Enter the nominee’s details, including their name, relationship with you, and their address.
Submit the form: Hand over the filled nomination form to your DP along with your signature. They may ask for an identity proof of the nominee, such as an Aadhaar card or PAN card.

Can I Change or Remove a Nominee Later?

What if you want to change your nominee later? It is possible to do so. You just need to fill out a modification form, called Form SH-14, either online or offline, and submit it to your DP. The steps are similar to adding a nominee.

Can You Have Multiple Nominees?

Yes, you can appoint more than one nominee for your demat account. You can even allocate specific percentages of your assets to each nominee, making sure that the distribution of your holdings is exactly as you want.

What Happens If I Don’t Add a Nominee?

If you do not assign a nominee, your family or legal heirs will need to go through a more complex legal process to claim your investments. This can lead to delays and additional stress during an already difficult time.