InvestorQ : My DP insists on nomination facility in my demat account. Is that compulsory?
Arusha Ray made post

My DP insists on nomination facility in my demat account. Is that compulsory?

Answer
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diksha shah answered.
2 years ago


SEBI has mandated that nomination should be recorded for a demat account held by individuals. If the nomination is not to be given then the account holder(s) should give a written and signed declaration to the effect. Actually, a nomination is relevant to you than to anybody else. In the event of any unfortunate happenings, these shares automatically transmitted to the nominee DP account. It is that simple.

The Account holder(s) is (are) required to fill a standard nomination form available with the DP. The nomination form has to be signed by two witnesses. If the account is a joint account, the nomination form should be signed by all account holders. A witness cannot be appointed as a nominee. Individuals, NRI, and Foreign Nationals having/opening demat accounts, either, singly or jointly with one or two joint holders can appoint a nominee. If the account is held jointly, all the joint holders are required to sign the nomination form.