Demat account holders alert: Finish vital task by March 31 or face frozen account

Demat Account Nominee Deadline:  As the month of March comes to a close, investors must complete various financial tasks before the beginning of the new financial year, FY 2023-24, in April. One such task that has a deadline of March 31 is adding a nominee to a Demat account. A Demat account is necessary for trading shares in the stock market, and failure to complete this task before the deadline will result in the account being frozen, and the investor will not be able to invest in the stock market.

Earlier, the Securities and Exchange Board of India (SEBI) had set March 31, 2022, as the deadline for nominee addition in a Demat account, but this deadline was extended to March 31, 2023. According to SEBI, adding a nominee is optional for account holders who added a nominee before July 2021. If the task is not completed before the deadline, the account will be frozen, and investors will not be able to trade shares in the stock market.

Fortunately, adding a nominee to a Demat account is a simple process that can be completed online. To add a nominee, visit https://eservices.nsdl.com/instademat-kyc-nomination/#/login and enter the DP ID, Client ID, PAN number, and mobile number. The name of the nominee must be added to the Demat account, and an OTP will be sent to the investor's mobile number to confirm the nomination.

SEBI's circular states that up to three nominees can be added to a Demat account. If more than one nominee is added, the investor must also enter the ratio in which the amount of shares deposited in the account will be divided.

Read more: PAN-Aadhaar Link: Check if your Aadhaar is linked with PAN or not using these simple steps