How to add nominee in Demat Account - A Guide
5paisa Research Team
Last Updated: 29 Jan, 2025 06:52 PM IST

Content
- What is Nomination in Demat Account?
- Who is a Nominee?
- Importance of Adding a Nominee in Demat Account
- Eligibility Criteria for Nominees
- How to add Nominee’s name in 5paisa Demat Account
- Conclusion
A Demat account is an essential financial tool that allows investors to hold securities like stocks, bonds, and mutual funds in electronic form, ensuring convenience and security. One critical yet often overlooked aspect of managing a Demat account is the nomination facility. Nomination is a process that allows the account holder to designate a person (known as the nominee) who will receive the account's holdings in the event of the account holder's demise.
The primary purpose of a nomination is to streamline the transfer of assets, avoiding lengthy legal procedures such as succession certificates or probate. By appointing a nominee, investors can ensure that their financial assets are easily accessible to their loved ones without unnecessary delays or complications.
Adding a nominee to your demat account in India is a crucial step to ensure the seamless transfer of your securities to your chosen beneficiary in the event of your demise. The Securities and Exchange Board of India (SEBI) has mandated that all demat account holders must either appoint a nominee or explicitly opt out. Failure to comply may result in your account being frozen for debits.
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Frequently Asked Questions
Yes, many depository participants offer online platforms that allow you to easily add a nominee to your demat account. 5paisa’s convenient feature enables you to complete the nomination process quickly and securely from the comfort of your home.
Yes, it is mandatory. The Securities and Exchange Board of India (SEBI) has mandated that all Demat account holders must add a nominee by the specified deadline. Failure to comply will result in the freezing of the Demat account, preventing any transactions from being carried out until a nominee is added.
Yes, you can nominate a friend as your demat account nominee, as long as they meet the eligibility requirements specified by the depository participant. The nominee must be a real person, and you will need to provide their complete details during the nomination process.
In the unfortunate event of the account holder's demise, the nominee can claim the securities by providing the necessary documents, such as the death certificate of the account holder and identity proof of the nominee, to the depository participant. Once the documents are verified, the securities are transferred to the nominee's name.