OPEN APP
Home >Money >Personal Finance >Zerodha allows customers to add nominees online

Zerodha allows customers to add nominees online

While opening a demat account became digital in 2016, nomination remained a physical process and the possibility of creating nomination through e-sign was only recently created by Sebi.Premium
While opening a demat account became digital in 2016, nomination remained a physical process and the possibility of creating nomination through e-sign was only recently created by Sebi.

  • If the customer’s account becomes dormant due to lack of activity for over a year, Zerodha will contact the nominees over SMS and email to inform them about the existence of the account, the blogpost said.

Listen to this article

Zerodha would enable customers to add or change nominations online, the brokerage firm said in a blog post on Monday. If the customer’s account becomes dormant due to lack of activity for over a year, the company will contact the nominees over SMS and email to inform them about the existence of the account, it added. 

According to the post, while opening a demat account became digital in 2016, nomination remained a physical process and the possibility of creating nomination through e-sign was only recently created by Sebi.

“A demat account that is registered with the Depository (CDSL at Zerodha). This is the account where you hold your securities in demat or electronic form. Securities once in a demat account can stay here forever unless you sell or transfer them to another demat. So it is important that you add a nominee to this account," the blogpost said. 

“Along with adding a nominee, it is also important to keep the nominee informed that you have a demat account, similar to a bank account. As mentioned earlier, we will alert the nominee on the email/mobile provided by you during nominee registration if your account turns dormant after a year of inactivity and you do not come back and enable it by doing a reKYC in time."

It cited a recent survey showing that 82,000 crore is sitting in unclaimed balances including bank accounts, unclaimed dividends, LIC policies, FDs, provident funds and mutual funds. However once a nominee is registered, changing the nominee requires a physical account process, the blogpost added.

Steps to add nominee (as per the Zerodha blogpost) after logging into Zerodha Console

> You will need Aadhaar linked to your mobile number to receive the OTP and e-sign.

> You need to upload the proof of identity of the nominee in PDF format. You can convert JPEG images to PDF for this.

> Once you have completed the above process, nominee addition to the account can take up to 48 hours. You will get an email from Zeroha as well as from CDSL (Depository).

 

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout