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Declare the name of the nominee in the demat trading account before March 31, 2022

Demat Account Rules: Do you trade in the stock market? So you must have opened a demat account for buying and trading of shares. But have you made someone your nominee in the demat account or not? If not created, then make a nominee in the demat account before 31 March 2022 and then if you do not want to make someone a nominee, then fill the Opt Out Nomination form or else your demat trading account will become inactive after 31 March 2022.

Also read: Home Loan at Repo Rate: Bajaj Housing Finance to offer the cheapest home loan in the new year

SEBI order

After the order of SEBI, from October 1, 2021, it was made necessary to declare someone as a nominee or opt out nomination i.e. the rule of not making anyone a nominee for all demat and trading accounts. Only then can a demat account be opened. SEBI had also issued the form for this. But for those who have opened demat accounts before this date and have not opted for Nominee or Opt Out Nomination, it is necessary to do so by 31 March 2022. It is necessary to sign the nomination and declaration form though no witness is required. However, if someone puts a thumb, then the signature of the witness will be required on the form.

Also read: Home Loan at Repo Rate: Bajaj Housing Finance to offer the cheapest home loan in the new year

Nominee’s share to be mentioned

According to the new rule, the demat trading account holder will have to tell to whom the shares lying in the account will be given after his death. There is an option to change the name of the nominee later. Three people can be nominated in the demat account. If two nominees are made, then how much will be the share of everyone, it will have to be declared.

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Shivam Bangwal

Shivam Bangwal is a young entrepreneur who is professional full time tech, travel and coding enthusiast with a post graduation degree of Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Branding Panther and Digital Leader.

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