Demat Account Nomination Rules 2025: What Changed and Why Does It Matter?

Demat accounts hold your shares and investments safely, but what happens if something unexpected occurs? 

SEBI has rolled out new nomination rules starting March 2025 to make sure your assets reach the right people without delays or court fights. 

Now, you can name up to 10 nominees instead of just 3, and you must provide full details like PAN, Aadhaar (last 4 digits), or passport for each. These changes apply to everyone with a Demat account. This means no more using power of attorney (PoA) for updates. 

Simple steps like this protect your family’s future and reduce unclaimed money piling up in depositories.

Key Changes in 2025 Demat Account Nomination Rules 

SEBI’s updates focus on clarity and speed for asset transfers. Here’s what changed:

• More Nominees Allowed: Stick to 3 nominees until August 31, 2025. From September 1, add up to 10 with exact percentage shares. If you don’t specify shares, they split equally. This helps families with many members plan better.
• Nomination Becomes Essential: Single account holders must nominate someone or formally opt out. Joint holders can skip it since survivors get assets first. New nomination forms are compulsory from June 1, 2025—no old ones accepted.
• Detailed Nominee Info Required: List the full name, relationship (like spouse or child), address, email, mobile number, and one valid ID proof. For minors, add date of birth; guardian details are optional but recommended.

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Nomination Process & Timelines

Updating is straightforward—do it online or offline. Use e-sign with Aadhaar or DSC for digital forms, or visit your broker for paper ones. Thumb impressions need two witnesses. You can change nominees anytime and get a receipt each time. If you’re unwell and can’t update, your major nominee can help after in-person verification at the Depository Participant (DP).

Follow these key dates to stay compliant:

Missing deadlines? Your account won’t freeze, but claims get delayed. NRIs must add OCI/PIO status too.

How to Update Your Demat Nominee 

Ready to act? Follow these easy steps on CDSL, NSDL portals, or your broker’s app Dhanush.

1. Log into your Demat account dashboard securely.
2. Find the “Nomination” or “Update Nominee” section.
3. Fill out Form SH-13 with up to 10 nominees’ full details and percentage shares.
4. Verify with KYC upload or e-sign (Aadhaar OTP works fast).
5. Submit and download the instant acknowledgement receipt.

For offline help, visit your DP with documents—they guide for free. NRIs email scanned forms with extra proofs. Track status online anytime. This takes 10-15 minutes and secures your portfolio.

Benefits & Common Mistakes

New rules bring real wins: Fewer unclaimed Demat assets (over ₹5,000 crore earlier), no family disputes in probate courts, and precise wealth sharing as you wish. It fits modern families with stepchildren or charities as nominees.

Watch out for pitfalls:

• Skipping full KYC leads to “Not in Good Order” (NIGO) rejections.
• Forgetting minor’s DOB blocks claims.
• Using old forms post-June 2025 gets bounced.

Update early to avoid last-minute stress during market highs.