The process of how to update Nominee in Demat Account


A Demat account plays a crucial role in the digitalisation of physical shares into electronic form, offering convenience and security to investors. Also, when it comes to a Demat account, it is important to consider various aspects, including how to update the nominee in the Demat account. To understand how to update a nominee in a Demat account, it's essential to contact your brokerage firm or financial institution directly. A nominee is someone designated to receive the securities or assets held in the Demat account after the original owner's death. Therefore, it is crucial to understand how to update the nominee in the Demat account and its significance.

Additionally, a Demat account nominee update ensures a smooth transfer of assets and provides security for your loved ones in case of unfortunate events. When wondering how to update a nominee in the Demat account, ensure you have accurate details of the new nominee, including their name, relationship, and contact information. In this article, we will learn about the nominee update for Demat accounts, how to update the nominee in the Demat account, and some important things about Demat account nominee update. 

What is a Demat Account?

A Demat account is used to Dematerialize or convert physical shares into electronic ones. For every Demat account, two organisations are responsible: NSDL (National Security Depository Limited) and CDSL (Central Depository Services Limited).


What is a Nominee?

A nominee is someone who is designated to receive securities or other assets after the death of an original owner. An account holder can nominate a beneficiary at any time without the beneficiary's consent.

A nominee is a person authorised to own, manage, and benefit from the account. Adding a nominee to your Demat account is similar to adding one to your bank's savings account. When you lose your ability to manage your investments, you can appoint someone who will be the legal heir(s) of your investments. Additionally, nominees for a Demat account are not mandatory but are recommended.

How many Nominees can be appointed?

A maximum of three nominees can be added to your Demat account. Additionally, each nominee in your account can be assigned a percentage. As an example, if you want to add three nominees, you could give 30% to Nominee 1, 50% to Nominee 2, and 20% to Nominee 3.

Why should you update a Nominee to a Demat Account?

You should add/ update nominees to your Demat account for the following reasons:

  • In case of uncertain death, adding/updating nominees to a Demat account makes sure everything gets transferred smoothly. Also, if you become incapacitated, it can speed up the asset transfer process.
  • By adding a nominee, you can ensure your loved ones are taken care of in the event of your death or incapacitated state. Your heirs can use it to avoid disputes about who inherits your property. 
  • Many states require a Demat account nominee update by law (depending on your location). If you live in one of these states and have not added a nominee, you may be breaking the law.

Steps on how to update Nominee in Demat account

It's easy to update a nominee to your Demat account using our Demat account app. This gives you peace of mind that your investments are taken care of if you die. Here's how to update the nominee in the Demat account:

  • Log in with your 6-digit PIN or biometrics. Go to 'Account' and then 'Profile'.
  • Go to 'Profile' and click 'My nominees.' You'll be redirected to the 'Nominee details' page, where you can update/add nominees or opt out. 
  • Complete the nominee's details and click 'Continue'.
  • Provide ID proof for the nominee.
  • As soon as you upload the documents, type in the "Nominee share in %" you want to give that nominee. Additionally, you can add up to three nominees. 
  • If the nominee is underage, you will need to provide the guardian's information.
  • Upon updating all nominees, click 'eSign with Aadhaar OTP' to proceed. If your mobile number is linked to your Aadhaar ID, you will be able to eSign.
  • Once you submit your request, it'll go through verification. Your nominee request will be added within 24 to 48 hours once all the documents are verified. Also, you'll get an email/SMS confirmation.

Few things to keep in mind when updating a Nominee

Keep the following things in mind when adding/updating a nominee to your Demat account:

  • Nominees must be individuals, not entities like HUFs, corporations, partnerships, trusts, or societies.
  • It's also important to decide what rights nominees have in the Demat account after you assign a nominee.
  • A nomination form must be signed by all account holders for a joint Demat account.
  • It is possible to assign more than one nominee. Up to three nominees can be selected. Each nominee can specify to what extent shares or securities should be transferred upon the death of the account holder.
  • Nominees can't be appointed to non-individual accounts. Only individual account holders are eligible.
  • It's possible to nominate a minor. Nevertheless, you have to include the minor's guardian's details.
  • The nominees can also be changed or removed at any time by submitting a duly completed form to your stock broker.



Understanding how to update the nominee in the Demat account is crucial to making sure your assets are transferred smoothly and providing security for your family. By designating a nominee, you can guarantee that your investments are taken care of and prevent potential disputes over inheritance. Moreover, adding a nominee to your Demat account is a simple process that can be completed online, offering convenience and peace of mind.

Remember that a maximum of three nominees can be appointed, and each nominee can be assigned a specific percentage of shares or securities. When updating a nominee, it is important to consider their rights and responsibilities within the Demat account. Also, nominees must be individuals, and a joint Demat account requires all account holders to sign the nomination form.

Frequently Asked Questions on Demat account Nominee Update

Yes. Any nomination can be changed or deleted at any time by submitting the prescribed form signed by all account holders to the Depository Participant (DP).

Yes, you can update the nominee in the demat account online.

It's not compulsory, but advisable to add a nominee to your Demat account.

If the account holder dies without a nominee, the original death certificate must be notarized or attested by a gazetted officer. After making sure the application is genuine, the stockbroker transfers the securities to the claimant's account.

If an account holder doesn't specify a 'nominee', the legal heirs may have to go through a lengthy and complicated process to claim the funds in the account or any assets related to the account after the account holder's death.

Yes, brokerage firms provide a designated nominee change form. You can obtain it from their office or website.

Yes, you can update the nominee in your Demat account multiple times as per your preference. Follow the same process each time you wish to make a change.

Yes, a minor can be appointed as a nominee, but a guardian must be assigned until the minor reaches the age of majority.

In the case of joint Demat accounts, the joint holders are typically considered nominees for each other. Additional nominees can be added if required.