SEBI extends demat nomination deadline to December 31
The Securities and Exchange Board of India (SEBI) has extended the deadline for existing demat account holders to provide a choice of nomination by three months to December 31, 2023. The earlier deadline was September 30. SEBI had previously mandated demat account holders to either provide a 'choice of nomination' or opt out of nomination altogether through a circular on March 27, 2023.
Mandatory nomination rule for demat accounts
SEBI had warned that demat accounts that didn't make a decision would be frozen from September 30. However, demat account holders now have time till December 31 to comply. Similar instructions were issued to physical security holders in listed companies to furnish their PAN, nomination, contact details, bank account details, and specimen signature for their corresponding folio numbers through a circular on March 16, 2023.
Nomination for trading accounts is now voluntary
"Submission of 'choice of nomination' for trading accounts has been made voluntary as a step toward ease of doing business," SEBI said in a press release. SEBI has instructed stock exchanges, depositories, Registrar and Transfer Agents (RTA), and listed companies to take necessary steps to implement the provisions of this circular and monitor compliance. The extended deadline and voluntary submission for trading accounts are expected to facilitate smoother operations for market participants while ensuring regulatory compliance.
