Demat Account Nomination - How to Add Nominee

Process of opening a demat account:

The instructions below provide an overview of the process of opening a demat account:

• Step 1: Selection of Depository Participant (DP)
• Step 2: Filling out the Dematerialization Request Form
• Step 3: Submission of necessary documents for verification by the investor
• Step 4: Signing of agreement between the investor and the DP
• Step 5: Verification of documents
• Step 6: Creation of demat account

Read: What is Dematerialisation

Impacts of having a Demat Account Nominee

When a Demat account holder passes away, it becomes tormenting for the heirs to claim ownership of the securities held by the deceased person. For this reason, it is crucial to have a nominee to the account. Registering a nomination for a Demat account can eliminate the need for documents like, a succession certificate for the transmission certificates, etc. An account holder can nominate up to three persons.

Need for a Nominee

In the presence of a nominee, the transmission of shares becomes a lot easier. The nominees do not have to move to the court or gather a No Objection Certificate and affidavits from the courts.
However, if a nominee has not been preordained, the family members may not receive the shares or funds. According to the reports from RBI, there are thousands of instances where unclaimed deposits lie in the banks across the country. These accounts belong to those who either have not claimed the money or the account holder has deceased or has not filed nomination details.

If a single demat account holder passes away, leaving a nominee, the share transmission process is simple. The nominee will have to submit a duly filled transmission form and a certified copy of the deceased person’s death certificate that a Gazetted Officer has attested.
 

How to add Nominee’s name in 5paisa Demat Account

5paisa makes it easy to add the name of the Nominee to any Demat account. 

Through the App 

Step 1: Log in to 5paisa Mobile App

Step 2: Click on User (At bottom)

Step 3: Click on My Profile

Step 4: Top right-click on Manage

Step 5: Click Nominee Details

Step 6: Add/Update Nominee or Opt-Out

Step 7: E-sign

Through Web

Step 1: Log in to 5paisa.com

Step 2: On top right Click on Profile Icon

Step 3: Click on Profile

Step 4: Click on My Profile

Step 5: Click on Nominee Details

Step 6: Add/Update Nominee or Opt-Out

Step 7: E-sign
 

Factors to consider while adding a nominee in demat account

• Only an individual holding a beneficiary account can provide a nominee.  Non-individuals such as society, body corporate, partnership firm, Karta of HUF, or a power of attorney holder are not allowed to do so
• For a jointly held beneficiary account, the nomination form has to be signed by all account holders
• A nominee cannot be assigned by a minor. However, a minor can be assigned as a nominee by an adult beneficiary by providing the name and address of the minor’s guardian.