Is nomination mandatory in the Demat Account?

Adding a nominee is Voluntary. However, SEBI has made it mandatory to either appoint a nominee or opt out of nomination for all demat accounts. 021 Trade strongly recommends having a nominee to ensure the smooth transfer of assets in case of unforeseen events. If you do not wish to appoint a nominee, you are required to submit a declaration opting out of the nomination process.

Having a nominee is a smart move, as it helps protect your financial interests and ensures that your assets are passed on without any legal complications.

Reference SEBI Circular: https://www.sebi.gov.in/legal/circulars/mar-2023/nomination-for-eligible-trading-and-demat-accounts-extension-of-timelines-for-existing-account-holders_69391.html