If you also trade in the stock market, this is an important news for you. Most of us investors just invest money but forget about the important tasks associated with it. It is most important to make a nominee in any kind of investment.
Demat Account: If you also trade in the stock market, this is an important news for you. Most of us investors just invest money but forget about the important tasks associated with it. It is most important to make a nominee in any kind of investment. So that, in case of any kind of emergency, your investment can go to the right person. SEBI has asked demat account holders to file nomination by June 30, 2024.
So many investors have just filed their nominations.
Recently, SEBI’s consultation paper has revealed that out of 13.6 crore demat accounts with single holding, 9.8 crore (72.5%) accounts do not have nominee information. Now this one mistake can have a serious impact on your close relatives at the time of emergency. The surprising thing is that 69.73% or 9.51 crore account holders have deliberately chosen not to nominate anyone. That is, he has deliberately opted out of the nomination. Whereas, after you leave, it is important that you file a nominee so that your money goes into the right hands.
Why is a nominee necessary?
The reason for this move by SEBI is to help investors secure their assets and pass them on to their legal heirs. Market regulator SEBI has also said that the order to file nominee is applicable to both new and existing investors. Under SEBI rules, new investors have to either nominate their securities at the time of opening trading and demat accounts or formally opt out of the nomination through a declaration form. That is, through this declaration form you will tell that you do not want to make anyone a nominee.
SEBI has extended the deadline several times
Sebi had initially set March 31, 2023 as the deadline for account holders to nominate beneficiaries or formally exit. The regulator had indicated that failing to do so, the account would be deactivated. The deadline was later extended twice, the last time being till December 31, 2023. Despite the warning and extension of the deadline, investors are still not filing nominations.
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