Demat account holder? Your account will be frozen for debits if nomination not done by September 30 - FAQs answered - DailyExpertNews

Are you a demat account holder? You must then add the nominee’s details before September 30, 2023 to avoid your account being frozen due to debits. As per a SEBI circular, it is now mandatory to nominate a person for your demat account or explicitly unsubscribe. Existing investors who have previously provided nomination information are exempt from resubmission. If you fail to submit the nomination details, or choose not to nominate anyone before September 30, your demat account will be frozen for debits, according to an ET report.
Most important points:

Nomination on demat accounts is now mandatory.
Two options: nominate someone or opt out of nomination.
Existing investors do not need to resubmit nomination information.
A two-factor authentication (2FA) process is available through which investors can access online trading platforms of stockbrokers/depositors and submit or opt out of nominations.

SEBI circular update:

A SEBI circular dated March 27, 2023, announced a change in the effective date for provisions related to account freezing. Instead of March 31, 2023, these provisions will come into effect on September 30, 2023.

Nomination process with NSDL:

NSDL facilitates online nomination for demat accounts (applicable to residents and individuals with one demat account).
Up to three nominees can be added for demat account holders.

To add a nominee with NSDL:
Frequently Asked Questions About Demat Nomination (NSDL):
What is ‘Nomination’? Nomination is a simple process where a security holder specifies who should receive the securities upon his death. This can be done when the demat account is opened or later.
Can joint holders nominate? Yes, co-holders can nominate. In the event of the death of a co-holder, the securities go to the surviving holder(s). Only if all co-holders die will the securities be transferred to the nominee (if nominated) or the legal heir.
Who could be nominated? Only individuals can be nominated. Entities such as societies, trusts, companies, partnerships or Hindu undivided families cannot be nominated.
Can there be more than one nominee? Yes, maximum three nominations are allowed for one demat account. If two or three nominees are mentioned, the proportion (%) in which securities are to be transferred upon the death of the account holder must be stated.
How do you appoint a nominee? Information about the nominees can be provided during account opening. If this is not done initially, a Nomination Form must be completed and submitted to the DP (Depositor).
Can the nominee be changed? Yes, account holders can change the nominee by completing a new Nomination Form and submitting it to the DP.