Well, this Blog is a quick update for all those people who are either investing in the share market or trading. See, if you have already bought shares or you have mutual funds holding or you are trading continuously, then listen to the information I am giving you very carefully and take this thing seriously this time. SEBI has announced that you have to add a nominee to your Demat account by 31st March 2021.
If you do not add a nominee, then your Demat account will freeze. This means that you will not be able to invest, nor will you be able to trade. If you have shared, you will not be able to sell them. If you have mutual fund holdings, you will not be able to do anything. Your account will freeze. So it is very simple that you have to add a nominee. How to do it? I will definitely tell you the steps now. You will be able to do it, but it is important to do it. This is point number one. Point number two is that your Aadhar card should also be linked to your PAN card. The date for both of them is 31st March.
Importance of Adding a Nominee
I will definitely tell you the steps now. You will be able to do it, but it is important to do it. This is point number one. Point number two is that your Aadhar card should also be linked to your PAN card. The date for both of them is 31st March.
Now, what is a nominee? Nominee means our heir. Today you have stocks in your Demat account or there may be money in your Demat account. You must have heard this tweet, it was very famous that the founders of Zerodha tweeted that thousands of crores of people have money in their Demat account and they are not taking it. This means money is there but it is not going. But now you must have seen that whatever money is in your Demat account, it comes back to your account on the 1st. So now these companies and brokers cannot keep money, so it was point number one.
But if you have holdings, and stocks, then what will you do? Listen to this. You have to add a nominee, as I said, nominee means heir. If you have stocks or mutual funds, then God forbid, but after you, we will go some time or the other. If we go, then the stocks or mutual funds have become your asset, who will be the heir to that?
So you have to decide that yourself and the most important thing is that you can put up to three nominees in your Demat account and it is not necessary that suppose you said that I have to make my wife a nominee and I have to make my mother a nominee. So if you take two nominees, then you can also do that you give 50% to your wife and 50% to your mother. This is also possible. It is not necessary that you give 100% to one person and if you have to make one person a nominee, then he can also be a nominee of 100%.
The Steps to add a nominee
So I am telling you the whole process step by step. It is a process of a few minutes, but do it because I am sure most of you have not yet added a nominee. So now I am going to do this in my wife’s account. The reason is that her nominee is not added. So now I will show you exactly.
So now we have come to upstox. Now, most of you must be using upstox already. If you do not have an account on upstox and you want to invest in the share market or want to trade, you can go to upstox for free and open your Demat account. The biggest advantage of upstox is that no charges are taken from you for a lifetime. There are no charges for account maintenance, so the account is opened for free.
Start Investing in Stock Market 👉 Open a Free Demat Account on Upstox: https://bit.ly/UpstoxFreeAc
Now you see here. Now what we will do here, we will simply click on the profile. When you click on the profile you will see an option of my nominees here.
As soon as you click on my nominee, now see if you have added a nominee to someone, then it will come here. See, the one who has opened a new account, your old account is also running. Similarly, you will have to check whether there is a nominee or not because it is mandatory for both. Whether you trade or you just invest, it is mandatory for both.
And let me tell you this too. Suppose you have a Demat account on upstox, Demat account on angel, Demat account on Samco. Whether you have multiple Demat accounts, it is important for you to add a nominee to all, otherwise, the one who has not added a nominee will freeze. So as I am showing the process here, you can do it similarly.
Now look ahead. As soon as you click on add nominee, here you have to fill the details of the nominees. So you can simply put the name, last name, and relationship and here you can select spouse, son, father, mother, or whatever you want to make a nominee. After that, it is optional to put the PAN number here. You will continue by putting in the PAN number. As soon as you continue, you will have to put the front and back of their Aadhar card, whatever you are making a nominee.
. Finally, you will have to signE. You will sign E, that is it. After that, the process of your nomination will be submitted and it will show you in pending. And as soon as it is successfully added, it can take you up to 48 hours to add a nominee. So as soon as the nominee is added successfully,it will show you that the nominee has been added.
So these are very simple steps that you can follow yourself and whichever Demat account you have of any company, you simply go to the settings, go to the profile and check. You will see the section of the nominee and in simple steps, you can add a nominee. It will take a few minutes, but your account will be saved from freezing. So this is an important update and you should not keep this update to yourself only because if you find this information valuable, you think that other people should also know about it.