What changes is Sebi proposing for demat account nomination?

Sebi is proposing to make nomination the default option for new demat accounts and mutual fund folios, simplifying required nominee information, and reducing the maximum number of nominees allowed.

Will investors have to appoint a nominee for new demat accounts?

Yes, nomination will be the default for new demat accounts, meaning investors must explicitly opt out if they do not wish to appoint a nominee.

What information is mandatory for nominees under Sebi's new proposal?

Under Sebi's proposed framework, only the nominee's name and their relationship with the investor will be mandatory.

Home / Business and Economy / Sebi Simplifies Demat Nomination Rules

Sebi Simplifies Demat Nomination Rules

18 Mar

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Summary

Nomination will be the default for new demat accounts.
Only nominee's name and relationship are mandatory.
Maximum nominees reduced from 10 to four.

The Securities and Exchange Board of India (Sebi) has proposed significant changes to simplify nomination rules for demat accounts and mutual fund folios, aiming to address operational challenges reported by industry participants.

The proposed framework makes nomination the default setting for investors opening new accounts. Individuals will need to actively choose to opt out of nominating someone and provide a declaration. This change replaces previous, more complex verification methods.

Sebi also plans to streamline the information required for nominees. Henceforth, only the nominee's name and their relationship to the investor will be mandatory fields. Optional details like address and percentage share will no longer be required.