A demat account is a virtual repository for your investment securities. It stores holdings such as stocks, mutual funds, etc. in electronic form.
As per SEBI rules, you have to add a nominee to your demat account to keep it active. From an added facility, it has now become a legal requirement.
In this article, we will guide you through the process of checking the nominee in your Demat account. Ensuring that your investments are protected and the transfer of assets is seamless.
Understanding Nominee in Demat Account
A nominee in a Demat account is the person designated to receive the assets in the event of the account holder’s death.
The nominee acts as a custodian and has the authority to manage and transfer the securities held in the account post the demise of the account holder.
Adding a nominee to a Demat account can ensure the smooth transfer of securities to the designated person and avoid potential complications.
Any individual who holds a demat account can appoint up to three people as his/her nominees including family members, friends, or trusted associates.
Minors could also be nominated provided they have guardianship. Corporate organizations cannot become nominees under this category.
Why is Having a Nominee in Your Demat Account Important?
Let us now look at some reasons that illustrate why it is important to have a nominee.
- Smooth Transfer of Assets: In the event of the account holder’s demise, having a nominee simplifies the legal process for transferring assets. This ensures the transfer of investments to the intended person without any hassle.
- Financial Support for Dependents: If you have dependents like children, a spouse, or parents, nominating them ensures they have financial support in your absence.
- Avoidance of Unclaimed Assets: Nomination prevents your assets from becoming unclaimed in case of unforeseen events, as your loved ones may not be aware of all your investments.
- Provide Peace of Mind: You can have the peace of mind that your loved ones are financially secure if your demat account has considerable assets.
- Mandatory by SEBI: As per SEBI’s instructions, they will freeze your Demat accounts and mutual fund folios if you do not choose a nominee.
- It is advisable to have at least one nominee to avoid ambiguity during the distribution of assets and to prevent investments from getting lost in case of any unforeseen event.
How to Check Nominee in Demat Account?
Ensuring the accuracy of nominee details is crucial for safeguarding your investments and ensuring a smooth transfer of assets to your chosen beneficiary.
Step-by-step guide on How to Check Nominee details in your Demat Account
- Log in to your Dhan account: Open the Dhan app and log in using your Mobile number and password.
- Navigate to the “Nomination Details” section: Tap on the “Profile & Account Details” from the home screen to locate the section dedicated to nominee details.
- View nominee details: Once in the “Nominee” section, tap to view the details of the nominee(s) designated for your Dhan account.
- Verify nominee information: Carefully review the details provided, including the nominee’s name, relationship to you, and any other relevant information.
- Rectify discrepancies, if any: If you identify any inaccuracies or discrepancies in the nominee details, promptly contact customer support for guidance.
By diligently following these steps, you can verify the nominee details associated with your Dhan account.
Proactively address any discrepancies, and safeguard your investments for the future.
How Can I Add or Update a Nominee in My Dhan Account?
At this moment, Dhan has an offline process to update the nominee. Once you click on “Update the Account Nominations,” you can view and download the nomination form.
Fill in the relevant details and send them to our customer support team for verification with the supporting documents.
Then, you can courier both the form and the documents to our registered address.
Conclusion
It’s pivotal to make sure your nominee details are correct in your Demat account. If there are any changes in circumstance, you can add a new nominee or update the existing ones.
This will help prevent any issues and ensure your assets go to the nominated beneficiary. If anything unfortunate happens to you, it will also give you peace of mind.
