Nomination in Demat Account: In the era of Kovid 19, it is more important that the family can take advantage of your investment without any additional hurdles.
Nomination in Demat Account: The crisis of Kovid-19 epidemic has explained how important it is to fill nomination in every investment, every bank account. Your investment and your planning will be in vain if you do not do the nomination properly and your family may have to go to the bank branch for the same amount of documents and money. In the era of Kovid 19, it is more important that the family can take advantage of it without any additional hurdles. You give the nomination information while opening your bank account, but have you selected your nominee in the demat account as well? Now that the trend of retail investors in stocks is so high, it is important that they understand the nuances related to nomination.
If you have any confusion related to the nomination, then you can read the answers to all the questions related to it here. According to the stock market depository NSDL, these questions have been answered.
When to nominate?
The process of nomination is very simple so that the owner of the demat account can decide according to whom he wants to give his shares on his death. You can also fill this nomination at the time of opening the demat account or if you have not filled it then it can be updated later. You can also make an NRI as a nominee.
How many nominees in one account?
A maximum of 3 people can be nominated in a demat account. The account holder has to fill some details of the nominee. If two or more nominees have been decided, then the account holder will have to decide the share of all the nominees, who will get what percentage of the share on death.
Can the nominations be changed later?
If you did not fill the nomination form while opening the account, then you will have to fill the nomination form and submit it to the Depository Participant or Broker. If the nominee has to be changed, that can also be done. For this, you can simply fill this nomination form and submit it again.
Which account cannot be nominated?
Nominee can be decided in any general or joint demat account. But, if a trust, society or corporate body, partnership company, HUF (Hindu Undivided Family) or people holding power of attorney cannot fill the nomination.
Nomination in Joint Demat Account
Nomination can also be done in joint demat account. However, on the death of one holder, the security will be transferred to the other holder. This transfer will happen to the nominee only if both the holders die. If the nominee is not given, then these transfers will be made to the legal heirs.
Can I nominate a minor?
According to NSDL, a minor i.e. children below 18 years of age can also be made a nominee in the demat account. But, whenever the nominee is a minor, the information of his guardian or guardian will also have to be given.
Can I make a separate nominee for each company’s share?
According to NSDL, there cannot be a separate nominee for each different security in a demat account. On the death of the account holder, all the securities will be transferred as the nominee’s fixed share. If you want to appoint a separate nominee for your different securities, then the account will also have to be segregated.
