SEBI circular on the subject, which is self explanatory. The nomination facility has been extended upto 30th September, 2023. I don’t understand why there needs to an expiry date for the nomination facility, if it has to be done by the investors, it has to be done. They will be the losers if they don’t do the same. And the whole idea of freezing of the demat or trading accounts if the nomination is not done is bizarre to say the least.
SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021 had mandated providing choice of nomination details, i.e., either furnishing of nomination or declaration for opting out of nomination for investors opening
new trading and or demat account(s) on or after October 01, 2021 and for all existing eligible trading and demat account holders latest by March 31, 2022 failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits.
Thereafter, on the basis of representations received from various stakeholders, vide SEBI circular SEBI/ HO/ MIRSD/ MIRSD_RTAMB/P /CIR/2022/23 dated February 24, 2022, the timeline for mandatory submission of ‘choice of
nomination’ for existing trading and demat accounts was extended to March 31, 2023.
Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations
received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of SEBI circular dated February 24, 2022 with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023.
Stock Brokers and Depository Participants shall encourage their clients to update ‘choice of nomination’ by sending a communication on fortnightly basis by way of emails and SMS to all such UCCs/demat accounts wherein the ‘choice of
nomination’ is not captured. The communication shall provide guidance through which the client can provide his/her ‘choice of nomination’.
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