Attention of the Participants is invited to NSDL Circular No. NSDL/POLICY/2022/029 March 03, 2022 regarding the SEBI Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 February 24, 2022 on Nomination for Eligible Trading and Demat Accounts – Extension of timelines and relaxations for existing account holders and NSDL Circular No. NSDL/POLICY/2022/020 dated February 04, 2022 regarding Operational guidelines w.r.t. nomination for demat accounts.
In this context, it was directed that the provisions mentioned at Para 7 of the said circular w.r.t. freezing of accounts shall come into force with effect from March 31, 2023 instead of March 31, 2022. Accordingly, Participants are requested to take note that all existing eligible trading and demat account holders shall provide choice of nomination as per the option given in paragraph 2 of SEBI circular dated July 23, 2021, on or before March 31, 2023, failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits.
It is reiterated that the Participants are required to approach their existing clients who have not submitted nomination details till date and inform such clients, to submit their nomination or request for opt-out of nomination (not to nominate anyone) in the prescribed format. Further, Participants are advised to inform their clients that in terms of the SEBI Circular, in case the eligible client neither provides nomination details nor does the client opt-out of nomination on or before March 31, 2023, the demat account shall be frozen for debits.