Securities Exchange Board of India on March 27 announced an extension of the deadline for trading and demat account holders to make nominations or opt-out of a nomination, from March 31 to September 30.
Sebi had previously required all eligible trading and demat account holders to select a nomination option by March 31. Failure to do so would have resulted in the freezing of the trading and demat accounts for debits.
The regulatory body overseeing the market has also urged stockbrokers and depository participants to prompt their clients to update their "choice of nomination" by sending SMS and email reminders on a biweekly schedule.
Investors who have previously submitted their nomination details are not obliged to submit them again. However, those who haven't submitted their nomination details yet and wish to either submit them or opt out of the nomination process may be given the opportunity to do so.
Investors can use two-factor authentication to submit or withdraw nominations on trading platforms offered by stock brokers or depository participants. Previously required details, such as mobile number, e-mail ID, and identification details of the nominee or guardian of minor nominees, are now optional. A signed declaration form by the account holder is still required.
Nomination or declaration forms can also be filled out online using the e-sign facility, which doesn't require a witness signature unless the account holder uses a thumb impression instead of a signature.
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