Why having a nominee is crucial for your investments?

How many accounts don’t have a nominee?

A shocking 73% of individually-held demat accounts either lack a nominee or opted out from having one.

Why should you have a nominee?

Without a nominee, your beneficiaries can become entangled in a limbo of legal formalities to claim the money. Worse, the money may remain unclaimed.

What happens if you don’t add a nominee?

Your investment folios and demat accounts will be frozen. You can no longer make withdrawals or fresh investments.

Adding a nominee made mandatory

In July 2021, SEBI published a circular asking demat or trading account holders to either nominate a beneficiary or opt out of it by filling up a declaration form.

Nomination deadline extended

The initial deadline was March 31, 2022 for demat accounts and March 31, 2023 for mutual funds. Currently, it is June 30, 2024.

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