How to Nominate for a Demat Account?

Nomination is the process of appointing a person to take care of one’s investments in the event of one’s death. Here are certain questions related to demat account.

DEMAT ACCOUNT NOMINATION:

1. Who can nominate?

Ans. Nomination can be made only by individuals holding beneficiary accounts either singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.

2. Can joint holders nominate?

Ans. Yes. Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.

3. Can a NRI nominate?

Ans. Yes, NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.

4. Can a minor nominate?

Ans. No, a minor cannot nominate either directly or through its guardian.

5. Who can be a nominee?

Ans. Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, karta of Hindu Undivided Family or a power of attorney holder.

6. Can there be more than one nominee?

Ans.  No, only one nomination can be made for one depository account.

7.Can a minor be a nominee?

Ans. Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.

8. Can separate nomination be made for each security held in a depository account?

Ans. No. Nomination can be made account wise and not security wise.

9. What is the procedure for nomination?

•The nomination form duly filled-in should be submitted to the DP either at the time of account opening or later.

•The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted.

•If nomination was not made at the time of demat account opening, it can be made subsequently by submitting the nomination form.

10. Can the nominee be changed?

Ans. 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.