Market regulator SEBI has made some new rules to open new demat and trading accounts. There is also an option to add nominee facility in this.
SEBI’s new rule regarding demat and trading accounts
Market regulator SEBI has made some changes in the rules for those opening new trading and demat accounts. Under this, a nomination form has to be filled before opening the account. Through which the investor can make someone a nominee. If they do not want this, they will have to fill a declaration form instead. This rule will come into effect from 1 October.
In a statement issued on Friday, SEBI said that from October 1, anyone opening a new trading and demat account will get the option of nomination and declaration form. At the same time, existing demat account holders are required to fill the nomination form by 31 March 2022. If the nomination or declaration form is not filled by anyone, then the account may be frozen.
How to fill form
To make someone a nominee, account holders have to fill the nomination form and sign it. No witness will be needed in this. According to the circular, nomination and declaration forms can also be filled online using the e-sign facility. Apart from Indian, any NRI can also be made a nominee. A maximum of three people can be nominated in a demat account.
Name can be updated
Demat and trading account holders can give the name of the nominee at the time of account opening or get it updated later. With this, after the death of the account holder, the shares will be given to the nominee. If two or more nominees have been appointed, the account holders will have to decide the share of all the nominees. After his death, he will get shares in the same proportion.
Number increased in Corona period
During the Corona period, the trend of people investing in the stock market has increased a lot. This is the reason that during the last two years, there has been an increase in the number of demat account openers in the country. In such a situation, SEBI is engaged in making the rules more transparent.
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