**Demat Account Nomination: A Crucial Step for Investors!**
🔹 **Introduction:**
If you are trading in the stock market, then this news is essential for you. Most of us invest money but forget about important tasks associated with it. In any type of investment, nominating someone is the most crucial thing. It can guide your investment to the right person in case of any emergency. SEBI has mandated Demat account holders to submit nominations by June 30, 2024.
🔹 **Lack of Nominations:**
A recent SEBI advisory revealed that out of 13.6 crore Demat accounts with single holdings, 9.8 crore (72.5%) accounts do not have information about nominated individuals. Surprisingly, 69.73% or 9.51 crore account holders have deliberately chosen not to nominate anyone, rejecting their heirs.
🔹 **Significance of Nomination:**
SEBI’s decision aims to safeguard investors’ assets and facilitate the transfer to their legal heirs. The order to submit nominated individuals applies to new and existing investors. As per SEBI regulations, new investors must nominate while opening a trading and Demat account or opt-out formally via declaration.
🔹 **Extended Deadline:**
Initially set for March 31, 2023, SEBI extended the deadline for naming or formally opting out to December 31, 2023. Despite warnings and extensions, investors have yet to register their nominated individuals.
Stay tuned for more updates on Demat account nominations by February 27, 2024! 📈💸 #InvestSmartly #SEBI #DematAccountNomination
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
