Nomination for Eligible Trading and Demat Accounts –Extension of timelines and relaxations for existing account holders
1.SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021had mandated submission of nomination details/declaration for opting out of nomination for investors opening new trading and or demat account(s) on or after October 01, 2021. The circular also prescribed mandatory furnishing of the aforesaid information for all existing eligible trading and demat account holders.
2. Para 2 of the said circular reads as follows:
“Investors opening new trading and or demat account(s) on or after October 01, 2021, shall have the choice of providing nomination or opting out nomination, as follows;
a.The format for nomination form is given in Annexure –A to this circular
b.Opt out of nomination through ‘Declaration Form’, as provided in Annexure –B to this circular
”Further, para 7 of the said circular reads as follows:
“Further, all existing eligible trading and demat account holders shall provide choice of nomination as per the option given in paragraph 2 above, on or before March 31, 2022, failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits.”
3.In this regard, on the basis of representations received from various stakeholders, it has been decided that:
(a) provisions mentioned at Para 7of the said circular w.r.t. freezing of accounts shall come into force with effect from March 31, 2023 instead of March 31, 2022.
(b)requirement mentioned at para 2 read with para 7 w.r.t. re-submission of nomination details shall be optional for the existing investors who have already provided the nomination details prior to issuance of the aforesaid circular.
(c) existing investors who have not submitted nomination details till date and intend to submit their nomination or opt out of nomination(not to nominate any one) may also be allowed to do so by way of two factor authentication (2FA) login on the internet trading platform for Stock Brokers/Depository Participants providing such services.
4. The details previously required in the form at Annexure A of the circular viz. mobile number, e-mail ID and identification details of the nominee(s)/guardian(s) of the minor nominee(s) have been made optional. The revised format of the nomination form is given in Annexure –A to this circular.
5. All other provisions mentioned in the circular SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021 shall remain unchanged.
6. Stock Exchanges and Depositories are advised to:
a)make necessary amendments to the relevant bye-laws, rules and regulations, operational instructions, as the case may be,for the implementation of the above circular; and
b) bring the provisions of this circular to the notice of their constituents and also disseminate the same on the website.
7. This circular is issued in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
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