The Securities and Exchange Board of India has made it compulsory for investors to add a nominee to single demat and mutual fund accounts starting September 1, 2026. Those who do not wish to nominate anyone must formally opt out by submitting a declaration. The new rule aims to simplify asset transfer after an investor’s death and reduce legal disputes.
Max Three Nominees Per Account
SEBI had earlier proposed allowing up to 10 nominees per account but has withdrawn that plan. Investors can now name a maximum of three nominees, same as before. If no share percentage is specified, the assets will be divided equally among all nominees.
Video Verification Removed for Opt-Out
Earlier, investors who did not want a nominee had to record and upload a video as proof. This requirement has been scrapped entirely. Now investors can simply fill a declaration form online or offline to opt out. No video submission is needed anymore.
Simpler Documentation Required
The regulator has also reduced the paperwork for adding nominees. Previously, details like address, email, phone number, identity proof, and share percentage were required. Now only the nominee’s name and their relationship with the investor are mandatory. All other information remains optional.
Joint Accounts Stay Optional
Joint demat accounts and mutual fund folios will continue to have nominee addition as optional. However, all joint account holders must give their consent for adding or changing a nominee. The earlier proposal allowing a nominee to operate an incapacitated investor’s account has been shelved for now.
Reminders Every Six Months
Depositories and mutual fund registrar and transfer agents will send reminders every six months to investors who have not yet added a nominee. These periodic alerts will help ensure compliance before the September 1 deadline. Investors are advised to check with their broker, bank, or mutual fund platform to complete the nomination process on time.
