How Do I Add a Nominee To My Demat Account? | Espresso

How Do I Add a Nominee to Demat Account?

Holding securities in a demat account has made it extremely easy to access it and trade it. But not just that, adding a nominee to your demat account also comes with its own set of benefits. Here is everything you need to know about demat accounts and adding a nominee to your demat accounts.

Published on 17 January 2023

What are demat accounts and how do they work?

Demat (short for dematerialisation) is a process to convert your physical securities into an electronic form. Any financial instrument, issued by the government or a private company, that can be traded is regarded as a security. This includes bonds, shares, stocks, mutual funds and other certificates that can be sold, bought and traded. The securities in electronic form are held in a demat account. A Depository Participant (DP) is responsible for maintaining and handling your demat account. 

Nomination in demat accounts

Nomination basically means choosing a beneficiary of your securities after your demise. Only individual demat account holders who are adults can add nominees to their demat accounts. Non-individual demat account holders such as trusts and mutual funds cannot have a nominee; neither can minors holding a demat account.
Also Read: Open Demat Account for Minors

In case of nomination in demat accounts, there can be two possible scenarios.

Individually held demat account

In this case, all the holdings will be transmitted to the nominee post the death of the original holder.

Jointly held demat account

In case one of the holders of a jointly held demat account passes away, the shares will first be transmitted to the only living shareholder. The surviving shareholder will have to submit a notarized copy of the death certificate of the deceased shareholder. The nominee will be a beneficiary of the shares only when both the original holders pass away.

In both cases, the nominee will have to duly fill up a transmission form, which can be found on the DP's website. A signed notarized copy of the death certificate of the deceased holder should also be submitted. Upon verification and processing, the securities will be transmitted to the demat account of the nominee. Here, it is important to note that for the transmission to happen, the nominee needs to have a demat account of their own. The process can take up to a week to complete.

How to add a nominee to a demat account?

Adding a nominee to your demat account requires you to put in your physical signature. Thus, the process cannot be done online. Here is how you can add a nominee to your demat account:

Step 1: Download the demat nomination form, available at the DP website. It is also available at the official website of NSDL or CDSL.

Step 2: Fill in the details about your nominee in the form.

Step 3: The nominee will have to sign wherever it's required.

Step 4: The demat account holder along with two other witnesses must sign on the nomination form as well.

Step 5: Attach a copy of any identity proof document. This can be the nominee's voter ID card, Aadhar card, driving license, passport etc.

Step 6: Send the form to the DP head office via courier.

Now that you added a nominee, they will be able to inherit your shares after your death. They will enjoy the same dividends and returns that you did as an original shareholder. Furthermore, they will also have the exact membership rights as you.

How to change a nominee in a demat account?

While choosing a nominee for your demat account, you must be careful and think through it more than once. But even if you feel like changing your nominee, it can be done quite easily. Nomination in demat accounts allows you to change or even remove a nominee from your demat account. Here is how you can change your nominee in your demat account.

Step 1: A nominee modification form is available at the DP website.

Step 2: Download the form and fill up the details of the new nominee.

Step 3: You will also need to fill up a demat nomination form, just like when you first assigned a nominee.

Step 4: Get the sign of the nominee and attach a proof of their identity.

Step 5: Put your own signature as well.

Step 6: Send both the nominee modification form and the demat account nomination form to the head office of the DP.

While appointing a nominee is free, switching a nominee requires you to pay a nominal fee of Rs. 25 + 18% GST.

Multiple nominees

If you want to have multiple nominees, you can add up to three nominees to a single demat account. You can have your shares distributed on a pro-rata basis or assign particular percentages of your share to each nominee. 

Benefits of assigning a nominee in demat accounts

Before demat accounts were introduced in India, people held all their securities in physical certificates. This made the transmission of shares after their demise very difficult as the nominees had to intimate every single company they owned shares of. However, with the dematerialisation of securities, this process of transmission is way easier.

Here is how a nominee can get their inherited securities transmitted to their demat account:

Step 1: The nominee must fill up the transmission form at the DP website.

Step 2: The nominee will have to submit a notarized copy of the death certificate of the original shareholder. It must be attested by a Notary Public or a Gazetted Officer

Step 3: After verification, the DP will transmit the securities to the demat account of the nominee.

After the successful transmission, the demat account of the deceased shareholder will be closed.


Essentially, adding a nominee to your demat accounts means having a person to look after your investments post your demise. With a nominee in place, the process of transmission of securities also becomes seamless. So, whether you're opening a new demat account or already have one, make sure to add a nominee.

Also Read: What Is Dematerialisation of Securities?

Chandresh Khona
Team Espresso

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