A shocking 73% of individually-held demat accounts either lack a nominee or opted out from having one.
Without a nominee, your beneficiaries can become entangled in a limbo of legal formalities to claim the money. Worse, the money may remain unclaimed.
Your investment folios and demat accounts will be frozen. You can no longer make withdrawals or fresh investments.
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.
The initial deadline was March 31, 2022 for demat accounts and March 31, 2023 for mutual funds. Currently, it is June 30, 2024.