How to Add a Nominee to a Demat Account

Including nominee details in a Demat account creates a clear pathway for the transfer of securities to a designated individual if the account holder is no longer able to manage the holdings. This helps avoid procedural delays and simplifies the transmission process for the person identified as the nominee.

Adding nomination information is a straightforward administrative step that helps establish clarity around how the account’s securities may be handled in such circumstances.

A nominee is an individual appointed by the account holder to receive the securities held in the Demat account upon the account holder’s death. The nominee acts as a custodian of the securities until they are transferred to the legal heirs as per applicable succession laws.

A nominee is not automatically the legal heir. Their role is to facilitate transmission, while the ownership ultimately follows legal inheritance rules.

Including nominee details in a Demat account helps establish a clear route for transferring securities if the account holder passes away. This reduces procedural hurdles for those handling the account and helps prevent ambiguity about who should receive the holdings.

A nomination entry can also minimise the chance of differing claims over the securities, since the designated person becomes the point of contact for transmission formalities. It functions as an additional layer of clarity for how the investments may be passed on.

SEBI has mandated specific guidelines and regulations for the process of nomination. These guidelines apply to the transfer of investments. 

• Who Can Be a Nominee: Any individual can be nominated, including minors. However, if the nominee is a minor, a guardian must be appointed to receive the securities on their behalf.

• Multiple Nominees: Account holders can appoint more than one nominee and specify the percentage of securities each nominee is entitled to.

• Single and Joint Demat Accounts:

  • In a single-held account, the nomination is straightforward

  • In joint accounts, nomination can be made only by the first holder unless otherwise specified

• Nomination Across Accounts: Nomination is account-specific. Different Demat accounts may have different nominees.

When updating nominee details in a Demat account, certain documents are typically requested to confirm the identities of both the account holder and the nominee. These support the DP’s verification process and form part of the documents for nominee addition and broader Demat nomination form requirements.

• PAN card of the account holder

• Identity proof of the nominee, such as Aadhaar or PAN

• The Demat account number linked to the nomination request

• A duly filled and signed nomination form (such as Form ISR-3 or CDSL Annexure-1)

Having these documents organised in advance helps ensure the nomination request can be processed without interruptions.

Nominee details can be added through either an online portal or an offline submission process, depending on the facilities offered by your Depository Participant (DP).

• Online Nomination

Many DPs and brokers provide a digital platform where account holders can log in and submit nominee information electronically. The process usually involves filling out a nomination form, verifying details, and completing an e-authentication step such as Aadhaar eSign or OTP verification.

• Offline Nomination

For those who prefer a physical process or whose DP does not support online updates, nomination can be added by submitting a signed nomination form at the DP’s branch. The form generally requires details of the nominee, relationship, and supporting identification documents.

Both methods follow a verification process by the DP, after which the updated nomination is recorded in the Demat account.

The nomination update follows a simple step-by-step flow, enabling account holders to register nominee details through either online or offline channels.

Step 1: Obtain the relevant nomination form (ISR-3, CDSL Annexure-1, or the form provided by your DP).

Step 2: Enter the required information, including the account holder’s details and nominee particulars.

Step 3: Attach the necessary identification and address documents, as specified by your DP.

Step 4: Submit the completed form physically, or if using an online platform, complete the eSign or digital verification process.

Step 5: The DP reviews the request and records the nomination after validating the information.

Once the verification is completed, the updated nomination is reflected in the Demat account within a short processing window.

Keeping nominee details updated helps ensure that securities held in the account can be passed on smoothly, without additional documentation such as succession certificates or court orders.

Some key advantages include:

• Streamlined transmission: The nominee can initiate the transfer process without extensive legal formalities.
  

• Reduced administrative delays: Clear records help avoid processing slowdowns after the account holder’s demise.
  

• Clarity for beneficiaries: Updated information removes ambiguity regarding who is authorised to receive the holdings.
  

• Support for orderly record-keeping: Current nominee details ensure accuracy in the DP’s system and simplify future transmission requests.

Overall, an updated nomination helps minimise procedural hurdles and supports uninterrupted handling of the account’s securities.=

To modify or cancel a nominee entry:

• Submit a fresh nomination form or a cancellation request

• Provide updated nominee details, if applicable

• Complete verification as required by the DP

If no nomination is recorded, transmission follows succession laws. This may involve:

• Filing legal documents (succession certificate, probated will, letter of administration)

• Additional verification steps

• Longer processing timelines

Your nominee information can be viewed through your depository participant’s (DP) online platform, account dashboard, or in the statement of holdings provided by the DP. Some brokers also display nominee status in the profile or account settings section.

Common ways to check nominee details in a Demat account include:

• Reviewing your account statement or Consolidated Account Statement (CAS)

• Logging in to your broker or DP’s mobile app or web portal

• Requesting a Client Master Report (CMR) from your DP

• Contacting customer support for verification, if online access is unavailable

Keeping track of this information helps ensure your nominee records stay accurate and reflect the latest updates.

Nomination in a Demat account supports a structured process for transmission of securities in the event of the account holder’s death. It helps establish clarity about who will receive the holdings and can simplify administrative procedures for the parties involved. Updating nomination details periodically keeps the account records aligned with the holder’s preferences.

This content is for educational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.