Nomination for Eligible Trading & Demat Accounts – Extension of timelines & relaxations for existing account holders

Securities and Exchange Board of India

CIRCULAR No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 | Dated: February 24, 2022

To

All Recognized Stock Exchanges
All Recognized Depositories
Stock Brokers (Trading Members) through Recognized Stock Exchanges
Depository Participants through Depositories

Dear Sir/Madam,

Subject: 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, 2021 had 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 7 of 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.

8. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework -> Circulars”.

Yours faithfully,

Sd/-
Aradhana Verma
Deputy General Manager
Market Intermediaries Regulation and Supervision Department
Tel. No. 022-2644 9633
Email id – aradhanad@sebi.gov.in

Nomination Form

[Annexure A to SEBI circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23
dated February 24, 2022 on Nomination for Eligible Trading and Demat Accounts –
Extension of timelines and relaxations for existing account holders]

TM / DP Name and Address

FORM FOR NOMINATION (To be filled in by individual applying singly or jointly)

Date

D

D

M

M

Y

Y

Y

Y

UCC/ DP ID

I

N

Client ID

I/We wish to make a nomination. [As per details given below]

Nomination Details

I/We wish to make a nomination and do hereby nominate the following person(s) who shall receive all the assets held in my / our account in the event of my / our death.

Nomination can be made upto three nominees in the account.

Details of 1st Nominee

Details of 2nd Nominee

Details of 3rd Nominee

1

Name of the nominee(s) (Mr./Ms.)

2

Share       of each Nominee

Equally [If not equally, please specify percentage]

%

%

%

Any odd lot after division shall be transferred

to the first nominee mentioned

in the form.

3

Relationship With the Applicant ( If Any)

4

Address of Nominee(s) City / Place: State & Country:

PIN Code

5

Mobile/ Telephone No.of nominee(s) #

6

Email ID of nominee(s) #

7

Nominee Identification details # [Please tick any one of following and provide details of same] Photograph & Signature L] PAN L]    Aadhaar L]   Saving Bank account no. L] Proof of Identity L] Demat Account ID

Sr. Nos. 8-14 should be filled only if nominee(s) is a minor:

8

Date of Birth {in case of minor nominee(s)}

9

Name of Guardian (Mr./Ms.) {in case of minor nominee(s) }

10

Address of Guardian(s)

City / Place: State & Country:

PIN Code

11

Mobile / Telephone no. of Guardian #

12

Email ID of Guardian #

13

Relationship of Guardian with nominee

14

Guardian Identification details # [Please tick any one of following and provide details of same] Photograph & Signature PAN  Aadhaar Saving Bank account no. Proof of Identity Demat Account ID

Name(s) of holder(s)

Signature(s) of holder*

Sole / First Holder (Mr./Ms.)

Second Holder (Mr./Ms.)

Third Holder (Mr./Ms.)

* Signature of witness, along with name and address are required, if the account holder affixes thumb impression, instead of signature

# Optional Fields (Information required at Serial nos. 5, 6, 7, 11, 12 & 14 is not mandatory)

Note:

This nomination shall supersede any prior nomination made by the account holder(s), if any.

The Trading Member / Depository Participant shall provide acknowledgement of the nomination form to the account holder(s)

Name and Signature of Holder(s)* 1.____ 2. ____ 3. ____

* Signature of witness, along with name and address are required, if the account holder affixes thumb impression, instead of signature