Account Demat Nomination: The 5-Minute Step That Protects Your Family's Investments

What Is Demat Account Nomination?

A Demat account nominee is a person designated by the account holder to receive or claim the securities held in the account after the investor's death, subject to the applicable legal and regulatory process.

The nomination facility is intended to make the transmission of securities easier for the investor's family and reduce the possibility of investments remaining unclaimed.

Importantly, a nominee should not automatically be understood as the final legal owner of the assets. SEBI's current guidance states that the nominee receives the assets in the capacity of a trustee and on behalf of the legal heir(s), subject to applicable succession laws.

Why Is Nomination Important?

Without a nomination, the family may need to complete additional documentation and follow the applicable transmission process to claim securities after the investor's death.

A registered nominee provides the Depository Participant with a designated person to whom the securities can be transmitted according to the applicable process.

For families managing investments across multiple accounts, having nomination details updated can also make it easier to identify who is intended to claim the holdings.

The purpose is not to replace a Will or succession planning. Instead, nomination is one part of keeping your investment records organised.

How Many Nominees Can You Add?

Under SEBI's modified nomination framework introduced in 2026, investors can provide up to three nominees for a Demat account.

If multiple nominees are specified, investors can provide the percentage share for each nominee. If the percentage is not specified, the allocation is treated equally under the prescribed framework.

For example, an investor could nominate three family members and specify how the securities should be allocated among them, subject to the applicable rules.

This can be particularly useful when an investor wants to document a clear nomination arrangement rather than naming only one person.

Is Demat Nomination Mandatory?

The current SEBI framework changed the approach to nomination.

For new single-holder Demat accounts, nomination is the default requirement unless the investor submits the prescribed opt-out declaration. Nomination is optional for jointly held Demat accounts.

Existing investors should check the nomination status of their accounts with their Depository Participant or broker rather than relying on older deadlines that appeared in previous SEBI communications.

SEBI had also clarified that existing Demat accounts would not be frozen simply because the investor had not submitted a choice of nomination.

How to Add a Nominee to Your Demat Account

The exact process can vary depending on your Depository Participant or broker, but the basic steps are straightforward.

1. Log in to Your Account

Open your broker or Depository Participant's website or app and look for the Nomination or Account Details section.

2. Add Nominee Details

You may need to provide information such as the nominee's name, relationship and date of birth where applicable. Additional details such as contact information and an identity document can also be provided under the current framework.

3. Specify the Share

If you are adding multiple nominees, you can specify the percentage share for each nominee.

4. Complete the Required Authentication

Follow the applicable online or offline verification process to submit the nomination.

5. Keep It Updated

Life circumstances can change. If your family situation changes, you can review and update your nomination.

SEBI's framework allows investors to change their nomination multiple times without a prescribed limit.

Can You Change or Cancel a Nomination?

Yes. Investors can modify their nomination by submitting a fresh nomination according to the applicable procedure.

This is useful if there is a change in your family circumstances or if you want to revise the people or allocation mentioned in your nomination.

Investors should also remember that nomination and estate planning are not the same thing. A nominee's role under the securities framework and the rights of legal heirs under succession law can involve different considerations. SEBI specifically notes that nominees receive assets as trustees for the legal heirs.

Demat Nomination With Ashika and Dhanush 2.0

If you manage your investments through Ashika's Dhanush 2.0, keeping your account information updated is an important part of managing your investment portfolio.

Along with monitoring investments, investors should periodically review their personal details, KYC information and nomination status where applicable.

The convenience of a digital investment platform is not just about placing trades or tracking holdings. It also includes keeping essential account information organised so that the account remains easier to manage over time.

A Small Step Worth Checking Today

A Demat account nomination may take only a few minutes, but it can become important when your family needs to access your investments.

If you already have a Demat account, take a moment to check whether your nomination details are updated. If your circumstances have changed, review whether the existing nomination still reflects your wishes.

It is a simple part of investment account management—and one that is easy to put off until it is too late.