Basic Guidlines For Nomination In Demat Accounts

Who can nominate

Nomination can be made only by individuals holding beneficiary accounts on their own behalf either singly or jointly. Non-individuals including society ,trust body corporate, partnership firm karta of Hindu Undivided Family, holder of Power of Attorney cannot nominate.

Can joint holders nominate

Yes. Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holder, the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.

Can a NRI nominate

Yes, NRI can nominate directly. But, the power of attorney cannot nominate on behalf of NRI.

Can a minor nominate

No, a minor cannot nominate either directly or through its guardian.

Who can be a nominee

Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, karta of Hindu Undivided Family or a power of attornery holder.

Can there be more than one nominee

No. at present only one nomination can be made for one depository account.

Can a minor be a nominee

Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be given.

Can separate nomination be made for each security held in a depository account

No. separate nomination cannot be made for each security. Nomination can be made account wise and not security wise.

Can a NRI be a nominee

Yes, NRI can be a nominee subject to the exchange control regulations in force from time to time.

What is the procedure for nomination

The nomination form duly filled-in should be submitted to the DP either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted.

Can the nominee be changed

Yes, the nomination can be changed anytime by the account holder by simply filling up the nomination form once again and submitting it to the DP. The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted. In case of joint holders, all joint holders must sign.

What is the procedure for transmission to nominee incase of death of the account holder

In case of the death of the sole holder or all the joint holder, the nominee must submit a duly filled-in transmission form and give the notarized copy of the death certificate and an affidavit in the prescribed format. After verifying these documents, the DP will transmit the securities to the account of the nominee.