A Guide on How to Add a Nominee to Your Demat Account

You can add a nominee to your Demat account by logging in to your account and entering your nominee details. Adding your Demat nominee, you can protect your savings in unanticipated circumstances.

Ensuring your savings are quickly transferred in emergencies is a crucial component of opening a Demat account. This blog provides a comprehensive guide on how to add a nominee to your Demat account.

What Does a Nominee Mean in a Demat Account?

A nominee is a person you have chosen to inherit the securities in your zero-broking Demat account after your demise. To ensure that your hard-earned assets are transferred appropriately, choose a nominee as a trustee or beneficiary with the right to inherit and manage your investments.

Why is a Demat Account Nominee Important?

One important way to protect your investments is to add a Demat nominee. The nominee can simply transfer securities to their name in the case of your death, eliminating drawn-out legal processes.

This ensures a smooth transfer of assets to your loved ones by removing the need for your beneficiaries to go through the difficult and time-consuming probate process.

Eligibility Criteria for Nominee in a Demat Account

Maintain the eligibility criteria below to add a nominee to your Demat account:

1. Mothers, dads, siblings, spouses, kids, and other individuals can be nominated.
2. Nominations from minors are also accepted, although they require the information of their guardians.
3. Become aware that nominations cannot be businesses, organisations, or non-individuals like Karta of HUF. Nominees must be actual members of your social circle or family.

How to Add Nominee to Demat Account – Step-by-Step Process

• Online Process to Add Nominee

You can add a Demat nominee with the PL Capital Group – Prabhudas Lilladher application. Here is the step-by-step process to add a nominee when you open an account with PL:

• Account Login

Open the PL Capital application, then enter your login information to access your Demat account.

• Select Nomination

After logging in, search for the ‘Nomination’ tab. The tab is clearly visible in the main menu of the app.

• Enter Nominee Details

You must enter your nominee’s information, including name, and verify that all of the data is correct and current.

• Mention the Share of Securities

The precise quantity or percentage of securities that each nominee is eligible to receive might be specified. Up to 3 people can be nominated, and the assets will be distributed among them.

• Fill Out the Guardian Details

You must include the legal guardian’s name and address if you are nominating a child or minors. You must also enter the date of birth of the minor in this case.

• Verify Nominee Details

Make sure all the information is correct before submitting the nomination form. Any mistakes might render the nomination invalid.

• Submit Nomination Form

Click ‘Submit’ to finish the nomination process if you are happy with the details. Your nomination or nominees will now be linked to your Demat account.

• Offline Process to Add Nominee

Here is the offline procedure to add a nominee to your Demat account with PL Capital:

Follow these procedures if you would rather handle nominations the old-fashioned way or if your DP does not allow online nominations:

• Get a Nomination Form

Get a nomination form by going to PL’s office or contacting them via phone or email. This form is also accessible on the websites of the majority of DPs.

• Enter the Required Information

Fill out all the necessary information carefully, including your name, address, Demat account number, nominee or nominees’ names, and your relationship with them.

• Enter the Percentages of Nomination

Specify the percentage of securities you want to allocate to each nominee. This is particularly helpful when there are multiple nominees.

• Designate Successor

If the original nominee or nominees are unable to receive the securities, it is also preferable to designate successors, just like with online nominations.

• Date and Sign the Document

Sign and date the form in the appropriate places when all required information has been completed.

• Send the Form to Your DP

Once finished, turn it in along with any other documents to the office.

• Obtain an Acknowledgement Receipt

As evidence of submission, make sure you obtain an acknowledgement receipt from the office.

• Check Information on Nomination Certificate

PL Capital will provide a nomination certificate with information about your nominees and their percentages. Make sure you thoroughly check every aspect and let the broker know if there are any inconsistencies.

• Protect the Nomination Certificate

You should store the original certificate alongside your other important documents in a safe location.

• Update Nominations

If your situation changes, do not forget to update your nominations. This will guarantee that, after your demise, your shares are transferred to the chosen beneficiary or recipients.

Demat Account Nominee Update Procedure

You can also change or update your nominee in your Demat account. Below is the procedure you should follow:

• Modify Your Nominee

Go to the account settings or profile section after logging into your Demat account. Look for the option to modify or edit the nominee’s information.

• Make a Request

Submit the request after completing the required fields, such as the new nominee’s information or any necessary modifications.

• Updated Nomination

The updated nominee data will appear in your Demat account when the DP verifies the information.

Things to Remember Before Adding a Nominee to Your Demat Account

• Non-Resident Indians

Subject to the current exchange rules, a Non-Resident Indian (NRI) may occasionally register as a nominee.

• Joint Demat Account

All account participants must sign to modify the nominee in a joint Demat account.

• Multiple Nominees

The owner of a Demat account must indicate the proportion of shares that each nominee will receive if there are multiple nominees. The holdings will be divided evenly among all nominees if it is not stated otherwise.

Final Thoughts

It is quite beneficial to know how to add a Demat nominee to your account to protect and transfer your property, particularly in the event of unexpected circumstances. Make sure you are aware of all the requirements, though, and choose a nomination carefully.

If you want to start trading, download the PL Capital application and open a Demat account for free.

Frequently Asked Questions

1. Does a Demat account require nomination?

To protect your investments, adding a nominee to your Demat account is strongly advised, even if it is not required.

2. Can you add multiple nominees to a Demat account?

Yes, you can add up to 3 nominees to your Demat account. For this, you need to provide their required details.

3. How can I add a nominee to an online Demat account?

To add a nominee to your online Demat account, log in to your broker’s portal or the NSDL website, enter the nominee’s information in the ‘Nomination’ section under ‘Account Settings’.

4. What happens if a Demat account has no nominees added to it?

If a Demat account lacks a nominee, the securities do not automatically transfer. Instead, legal heirs must go through a drawn-out court procedure to obtain a succession certificate or legal heirship documents, proving their right to the assets.