Sebi new rules for investor : Markets regulator Sebi said on Friday that from October 1, anyone opening a new trading and demat account will be given the option of nomination. However, if they wish, they can open an account without nominating anyone. According to the circular of SEBI, it has issued a format of nomination form. In case of non-filling of the nomination form, a declaration form will have to be filled. Its format is also printed. Existing demat account holders are required to fill the nomination form by March 31, 2022. If you do not want the nomination facility, then a separate form will have to be filled. Accounts will be frozen if the nomination or declaration form is not filled.
Account holders will have to sign the nomination and declaration form
Account holders will have to sign the nomination and declaration form. But no witness will be needed. However, if the account holders put the thumb impression, then the signature of the witness will be required in the form. According to the circular, online nomination and declaration forms can be signed using the e-sign facility. In that case a witness would not be needed.
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What are the rules related to the nominee
In fact, demat and trading account holders can decide who should be given their shares after their death. He is made the nominee. Nomination can be done at the time of opening demat account. Although the names of the nominees can be updated later. An NRI can also be made a nominee. You can also make an NRI as a nominee. A maximum of three people can be nominated in a demat account. Nominee details can be filled in this. 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.
During the last two years, the pace of opening demat accounts in the country has increased significantly. In such a situation, SEBI is engaged in making the rules more transparent. This is the reason why this new rule has been brought regarding nomination in the demat account.