Capital markets regulator Sebi on Tuesday extended the deadline till September-end for existing trading and demat account holders to provide choice of nomination or opt out of nomination. Earlier the deadline was March 31, 2023.
In July 2021, the Securities and Exchange Board of India (Sebi) asked all existing eligible trading and demat account holders to provide choice of nomination on or before March 31, 2022, failing which the trading and demat accounts would have been frozen for debits. Later, this was extended by one more year till March 31, 2023.
“Based on the assessment of the trading as well as demat accounts in which choice of nomination details (furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions… with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023,” Sebi said in a circular.
Also, Sebi has asked stock brokers and depository participants to encourage their clients to update ‘choice of nomination’ by sending a communication on fortnightly basis by way of emails and SMS to all such UCCs/demat accounts wherein the ‘choice of nomination’ is not captured.
The communication would provide guidance through which the client can provide his/her ‘choice of nomination’. Investors who are opening new trading and demat accounts from October 1, 2021 have the choice of providing nomination or opting out of nomination through a declaration form.