In a significant move, the Securities and Exchange Board of India (SEBI) has provided a major relief to demat account holders.
SEBI recently announced an extension of the deadline for filing nominees until the end of December.
Additionally, investors now have the option to skip nominating anyone by submitting a declaration form.
This change makes the nomination process for demat accounts voluntary and aims to simplify trading.
SEBI has also extended the deadlines for submitting PAN (Permanent Account Number), nomination,
and KYC (Know Your Customer) details for physical security holders. The original deadline of September 30, 2023, has now been extended to December 31, 2023, providing a three-month extension.
SEBI’s primary goal with this initiative is to assist investors in safeguarding their assets and ensuring the smooth transfer of these assets to their legal heirs.
According to SEBI, “It has been decided to extend the last date for submission of details of the choice of nomination in respect of demat accounts until December 31, 2023,” as stated in a circular.
Previously, the deadline for this process was September 30.
SEBI’s Warning and Compliance Measures
SEBI had previously warned that demat accounts failing to comply with these regulations by September 30, 2023, would be frozen.
The regulatory body has also instructed stock exchanges, depositories, RTAs (registrars and transfer agents),
and listed companies to take necessary actions to implement the terms outlined in this circular and ensure compliance.
This extension and flexibility offered by SEBI are expected to provide much-needed relief and convenience to demat account holders.