What if you have given the name of the nominee in the trading and demat account? If not given then you should do this work soon. Now SEBI has made it mandatory to do so. Now the person having demat and trading account will have to make a nominee. If he does not want to do the nomination due to any reason, then this information will also have to be given.
Earlier the last date for nomination was March 31, 2022
Earlier, the last date for making nominations in demat and trading accounts was March 31, 2022. Now SEBI has increased it to March 31, 2023. SEBI had issued a circular in this regard on February 24. Earlier, in July 2021, SEBI had asked demat and trading account holders to make nominations by March 31, 2022.
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Nomination deadline extended to 31st March, 2023
SEBI had said in its circular on February 24 that delegations of different parties had given their views in this regard. After this, the last date for making nominations has been extended from March 31, 2022 to March 31, 2022. The demat and trading accounts of investors who have not nominated by this date will be frozen.
Why has SEBI made it mandatory?
SEBI has taken this decision in favor of the investor. Experts say that SEBI should have done this work long ago. Actually, due to the lack of nomination in the demat account, there is a lot of problem when the account holder dies. In such a situation, it is difficult to transfer the shares held in his demat account in the name of his family members.
What are the benefits of nomination?
If the name of the nominee is already there in the demat account, then there is no problem regarding the ownership of the shares. The legal owner of those shares is the person whose name is mentioned in the nomination. Generally, the person makes his wife or children as the nominees.
At present, there are thousands of demat accounts in which there is no legal owner of the shares held. The reason for this is that the nomination has not been done in these demat accounts. Then, there is no legal owner of those shares after the death of the account holder. It is possible for the family members of the account holder to transfer these shares in their own name. But its process is complicated.
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