Do you want to protect your hard-earned money and ensure that it goes to the right person in case of any unforeseen event? As an investor participating in the Indian stock market, it is essential to include a nominee in your demat account before the deadline of December 31. Complying with this requirement set by SEBI is crucial to prevent potential legal complications and facilitate a seamless transfer of your assets to your selected beneficiary. In this blog post, we will explain why nomination matters, how to add a nominee to your demat account, and a nominee in a mutual fund portfolio.
Here’s a simple guide to ensure your assets are protected.
What is a Nominee
A nominee refers to an individual designated to inherit securities or other assets in the event of the original holder’s demise. The account holder has the authority to nominate without requiring the beneficiary’s consent, and having a nomination in Demat accounts adds an extra layer of security.
Is Nominee Mandatory for Demat Account? Why Nomination Matters
Whether you are an experienced investor or a novice, the procedure holds significant importance. The Securities and Exchange Board of India (SEBI) requires the inclusion of a nominee by December 31, a mandate applicable to both new and existing investors. This ensures a seamless transfer of assets in the future.
How to Check/Add a Nominee in Demat Account on Shoonya
1. Access your Prism portal: https://prism.shoonya.com/
2. Navigate to the ‘Services’ icon in the left bar.
3. Choose ‘Add Nominee’ as the reason.
4. Complete and submit the provided form.
5. Expect a ticket verification within 24 hours, confirmed via email.
6. E-sign the ticket with your Aadhaar number.
7. Your nomination will be successfully added within the next 24 hours.
Adding a Nominee to Your Mutual Fund (MF) Folios: A Step-by-Step Guide
Adding a nominee in mutual funds is a crucial step that can be undertaken either at the initiation of your investment or at a later stage. Follow these steps for a hassle-free nomination process:
1. Nominate During or After Investment
Initiate the nomination process when you start your investment in mutual funds or at any point thereafter. This flexibility ensures that your assets are duly safeguarded.
2. Online Nomination Updates
To update your mutual fund nominations conveniently, simply visit the official web portal of the Mutual Fund house. This user-friendly online process streamlines the nomination modification.
3. Maximum of 3 Nominees
You can add a maximum of three individuals as nominees for your mutual fund investments. Choose wisely based on your preferences and share allocations.
4. Specify Share Allocations
During the nomination, you have the option to specify how much share of the investment should be allocated to each nominee. This customization allows you to tailor the distribution according to your preferences.
5. Sign Nomination Form
Ensure that the nomination form is duly signed by all the unit holders involved in the mutual fund investment. This collective signature confirms the validity of the nomination.
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6. Dealing with Demat Account Investments
If your mutual fund investment is facilitated through a demat account and the units are held with the depository, the nomination details submitted to the depository by the unit holder automatically apply to the mutual fund holding. This seamless integration simplifies the process for demat account holders.
By following these steps, you can add nominees to your mutual fund investments effortlessly, securing your financial assets and ensuring a smooth transfer to your nominees in the future.
Don’t Miss the Deadline
Act fast to ensure your financial security. The deadline is approaching, and adding a nominee to your demat account is a simple yet crucial step.
Investors now have an extended deadline until June 30, 2024, to complete their nomination process for mutual fund (MF) and demat accounts, as announced by the Securities and Exchange Board of India (SEBI) in a circular issued on December 27
Source- livemint.com
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.