Demat Account: If you also trade in the share market, then there is good news for you. The demat account holder will have to complete this work by 31 December 2023. If you do not do this then you will not be able to trade in the stock market in the new year. Investors cannot buy or sell shares on BSE and NSE until they update the nominee. It is mandatory for the demat account holder to file the nominee by December 31, 2023. Till now SEBI has not extended this deadline beyond December 31, 2023.

It is mandatory to file Demat nominee

The Securities and Exchange Board of India (SEBI) has made it mandatory for all personal demat account holders to file a nominee. Investors have to complete this work by December 30. If you do not file the nomination by December 31, your account will be frozen and you will not be able to trade in the stock market. You will not be able to buy and sell stocks from the stock market on January 1, 2024.

SEBI has extended the deadline several times

SEBI has extended the deadline for filing nomination several times for all existing trading and demat account holders. The process and deadline for filing the nominee was initially fixed as March 31, 2022, but till now this deadline has been extended several times. Earlier its deadline was 30 September 2023 which was extended to 31 December 2023.

Why did SEBI make it mandatory to file nominee?

The reason for this move by SEBI is to help investors secure their assets and pass them on to their legal heirs. Market regulator SEBI has also said that the order to file nominee is applicable to both new and existing investors. Under SEBI rules, new investors have to either nominate their securities at the time of opening trading and demat accounts or formally opt out of the nomination through a declaration form. That is, through this declaration form you will tell that you do not want to make anyone a nominee.

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NSE has said that demat account-holders will have to enable two-factor authentication by 30 September 2022. Otherwise, you will not be able to log in to your account.

What is Demat Account?

Any person who wants to invest in the stock market in India i.e. buy or sell shares, needs a demat account. It is a platform for investors to hold their shares and securities like mutual funds, bonds etc digitally. A person’s demat account is linked to his trading account.

NSE has said in its circular that users will have to select any one of the authentication factor along with the knowledge factor or possession factor for biometric authentication.

Learn how to enable Two-Factor Authentication

As per the circular, biometric authentication will be done using Password/PIN or OTP/Security Token. In case biometric authentication is not possible, login to the demat account should be allowed using a combination of Password/PIN with OTP/Security Token.

According to NSE, two-factor authentication is a one-time job. Once you have completed this, you can log in to your account using your login ID, password and a required security image. Also any additional information your depository may require.

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