Like in your bank’s savings account, you can add a nominee to your Demat account. You can authorize a person who will be a legal heir(s) of your investments in case of any unfortunate event. The person authorized is known as a nominee. You should see that nomination is not mandatory but is advisable.
Appointing a nominee can save a lot of trouble for you and your relatives in case of an untimely demise of a primary beneficiary. Generally, people select a nominee while opening their Demat account. If you haven’t already done so, you can also add a nominee later on by logging on to Angel One’s web portal.
Benefits of appointing a nominee
Below are some reasons to add a nominee to your Demat account:
– Saves your family members from long-winded procedures (and legal battles) of collecting and submitting multiple documents like NOC (No Objection Certificate) and affidavits to the concerned authorities
How many nominees can be appointed?
You can appoint a maximum of 3 nominees to your Demat account. Additionally, you can also assign percentages to each nominee in your account. For example, if you want to add three nominees, you can give 50% to nominee 1, 30% to nominee 2 and 20% to nominee 3, as per your preference.
Who can be a nominee?
Consider the below points while choosing your nominee(s).
– Nominee can be your father, mother, spouse, siblings, children or any other individual
– A minor can be added as a nominee, provided details of his/her guardian are also added
– You can’t appoint non-individuals like a corporation, Karta of HUF, or the society as a nominee
How can you appoint a nominee?
Follow the below steps to add nominee(s) to your Demat account.
1. Login to Angel One web platform
2. Find the dropdown menu on the right-hand side, next to your Client ID. Click on My Profile to find the add nominee option.
3. Click on ‘Add Nominee’ and add details like name, date of birth, relationship, PAN and allocation %
4. If you want to add multiple nominees, repeat Step 3
5. Click on ‘Proceed for E-Sign’ and enter your Aadhar number
6. Now enter the OTP received on the mobile number linked with Aadhar and complete the process
Nominee helps to ensure a smooth transfer of your investments to your legal heir in the event of an unfortunate incident. It saves a lot of time and trouble for your family members and keeps them financially secured. If you are a new investor, add a nominee while completing the onboarding process. And in case you are an existing Demat account holder, click here to add nominee(s).