Mutual Fund/Demat Account Nominee Update Last Date Is Dec 31: Here's How To Add Nominee To Your Account

The deadline for Demat account holders and for mutual fund unit holders to provide a choice of nomination is December 31. On September 26, the market regulator Securities and Exchange Board of India (SEBI) extended the deadline for existing demat account holders to provide a choice of nomination by another three months to December 31, 2023.

Nomination is a simple process by which a holder of securities communicates his / her preference regarding who should receive these securities in case of his / her death. The process of nomination in respect of demat account can be done at the time of opening of demat account or any time later.

Thus, to avoid your demat account becoming inactive nominate your loved ones by December 31, 2023.

It is highly recommended to have the nominee mentioned in the demat account. In the unfortunate case of the death of a sole account holder, it makes the process of transmission very easy and fast. If you do not wish to mention any nominee at the time of account opening, you are required to state that ''I/We do not wish to make a nomination''.

You can either nominate or explicitly decide to opt out of nomination. For NSDL demat account holders, NSDL has brought a facility to nominate online (applicable for single demat account holders and Resident Individual). Using this facility, demat account holders can add up to three nominees to their demat accounts. Follow the below listed steps to add a to the NSDL demat account:

• Click on https://eservices.nsdl.com/instademat-kyc-nomination/#/login
• Enter + + . OTP on the mobile number registered in your demat account.
• Select OR .
• e-sign using AADHAAR. OTP on the mobile number registered with UIDAI (AADHAAR).

Can the nominee be changed in the demat account?

Yes, the nomination can be changed anytime by the account holder(s) by simply filling up the Nomination form once again and submitting it to the DP.

Deadline to apply for nomination for Mutual Fund is December 31, 2023

The deadline for nomination for mutual fund unit holders has also been extended to December 31, 2023, from an earlier September 30 deadline.

Existing demat account holders and mutual fund unit holders have been given additional time to provide a choice of nomination. The new deadline for submitting the nomination is December 31, 2023, pending which the folios will be frozen for debits. The nomination facility enables the person or persons nominated to receive the benefits of investments in the event of an investor's death.

To add a nominee for your Mutual Fund investments, you can use the common nomination form for mutual funds provided by the asset management Companies (AMCs). Key details that you need to provide in the nomination form include:

• Name of the nominee
• Date of birth of the nominee
• Nominee's relationship with the investor
• Address of the nominee
• Percentage share of each nominee (if there is more than 1 nominee), etc.

You can add up to 3 nominees in one mutual fund folio and specify the percentage share that each nominee will receive in the event of your death. If you do not specify the percentage share, your Mutual Fund units will be equally distributed among all the nominees mentioned in the nomination form.

Those who want to update their mutual fund nominations online can visit the intermediary's web portal or NSDL website and follow a few simple steps.

1. Go to the official NSDL's portal at https://nsdl.co.in/

2. On the homepage, click on the 'Nominate Online' option

3. A new page will appear on the screen seeking your DP ID, client ID, PAN, and OTP

4. After entering these details, choose the option of 'I wish to Nominate' or 'I do not wish to nominate'

5. Upon selecting the option to add a nominee, a new page will open seeking the nominees' details.

6. Next, on the eSign Service Provider's page, enable the checkbox and click on 'Proceed'

7. Finally, verify the OTP.

At last, you will receive a confirmation, and on DP's confirmation, the nomination will be updated for mutual fund investments.