Market regulator SEBI has made it mandatory for demat account holders and mutual fund investors to add nominee. However, the situation is still such that 3 out of every 4 demat account holders have not added the nominee, whereas now the deadline is also near.
Nominee in only so many demat accounts
SEBI This month released a consultation paper regarding the nomination. According to the paper, out of 13 crore 64 lakh single demat accounts across the country, nomination details are missing from 9.8 crore i.e. 72.48 percent demat accounts. 69.73 percent i.e. 9.51 crore demat holders have deliberately not given nominee information, while 2.76 percent i.e. 37 lakh 58 thousand demat account holders are confused. They have neither added a nominee nor opted out of nomination.
Status of nomination in mutual funds
Similarly, in 8.9 single mutual fund folios i.e. accounts Of these, nominees have been made in 85.82 per cent i.e. 7 crore 64 lakh folios, while in 14.18 per cent i.e. 1.26 crore folios, the option to stay out of nomination has been chosen or due to confusion, neither nominee has been made nor the option to stay out of nomination has been chosen. The option has been chosen.
In the case of both demat accounts and mutual funds, there are a significant number of people who deliberately do not want to give the details of the nominee i.e. opt out of the nomination… Or there are people who do not know whether a nominee should be kept or not. Let us know why it is important to add a nominee in investment…
What is Demat-MF Nomination?
Nomination is a process in which you choose a person who takes care of your assets in case of your death. According to the rules, nomination in a new demat account or mutual fund is mandatory. If you do not want to make anyone a nominee, then you will have to choose the nomination opt out option in the form. Earlier, nomination was not mandatory, due to which many people used to skip it and move ahead.
What will be the consequences of not adding a nominee?
It is necessary to add a nominee so that the investment If the person making the money is no more, his capital will easily reach the right hands. The nominee can be a legal heir or a close person. If the nominee does not have a legal heir, the nominee works as an agent or trustee to hand over the property to the legal heir.
Problems if you do not add a nominee?
In mutual funds. In case there is no nominee, the legal heirs or claimants have to show various documents like will, legal heir certificate, no objection certificate from other legal heirs to get their share of the unit transferred. Many investors do not write a will. In such a situation, if the nominee is not appointed, then the family of the deceased investor will have to prove that they are the legal heir of the deceased person, which is a very difficult task.
How to update the nominee?
< p>The nomination process is easy. Nominees can be added to mutual funds both offline and online. In offline mode, you can fill the nominee details in the form and give it to the fund house. Whereas, in online mode, go to CAMS website www.camsonline.com and select MF Investors. After this, you will have to click on the option of Nominate Now and enter the PAN number. After this, the details of mutual funds accounts will appear in front of you. By clicking on the account, you can register the nominee, change or delete the nominee. This work can also be done through the website of the mutual fund.
How to update nominee in demat account?
To update nominee in demat account, go to NSDL website https:// Go to nsdl.co.in/ and click on Demat Nominate Online. On entering DP ID, Client ID and PAN, OTP will be received on the mobile number registered on the demat account, after which you will be able to make nomination through Aadhaar OTP by filling the details of the nominee.
Deadline for adding nominee?
The deadline for nomination in mutual funds and demat was ending in March itself, but now the date has been extended to 30 June 2024. If you have not done this yet, then do it quickly, otherwise your demat account will be closed and you will not be able to withdraw money from the mutual fund. People should update their nominees not only in mutual funds and demat accounts, but also in bank accounts, FDs, provident funds, insurance policies etc.