"Nominee" is added in a demat account so that on the event of the account holder's demise, the nominee can be authorized to handle the shares held in the demat account of the deceased to ensure that the account holder's investments are managed according to their wishes.
Any person of legal age and sound mind can be a nominee. This can include legal heirs, immediate family members, extended family, or friends.
In cases where the nominee is a minor, the account holder would also need to appoint a Guardian, who can handle the account until the nominee becomes a major or 18 years old.
RELATED FACTS:
- Non-individual accounts such as HUF, partnership firms, LLPs, and corporate accounts cannot have a nominee.
- If the nominee is a minor, mention the guardian's details and provide ID proof of the guardian. The account holder himself cannot be added as the guardian of the nominee.
- The nominee would apply to the trading and demat account, including mutual fund investments.
- Dormant account holders must reactivate the account to add a nominee.
- Charitable trusts cannot be added as a nominee.
- Joint account holders and NRIs can only add a nominee(s) offline. A nominee can be added online only if the mobile number is linked to the Aadhaar and a nominee was not added earlier. NRIs can add nominee(s) offline, as long as their Aadhaar is linked to their active mobile number.
- It will take 7 working days to complete the nomination process at Jainam, and you can select a maximum of 3 nominees.
- The names of the nominees must exactly match the names on their documents to simplify the process of making claims in difficult situations. Photograph of the nominee is not required.