Hey, do you know how to add a Nominee in Zerodha? Read this article carefully if you have no idea how to add a Nominee in Zerodha or other broker accounts. This process helps you to save your investment in case anything untoward happens to you. Even if you are not there, your invested capital will fetch benefit and transfer it to your Nominee.
In this article, we will discuss the following important aspects for your benefit only.
- How to add a Nominee in Zerodha
- How to add a Nominee in Zerodha Kite
- How to add Nominee to Zerodha account
- How to check a Nominee in Zerodha
- How to add a Nominee to Angel One
- How to add a Nominee in Kotak Securities
- How to add a Nominee in HDFC Securities
- How to add a Nominee to Zerodha App
The following section will help the investors to know what Nominee is and why it is important for a trader or an investor. In addition, we will discuss in detail how to add a Nominee to different broker accounts and why we should not miss it. We will also get to know how to check the Nominee details in a particular account.
What is a Nominee in the Stock Market?
Whenever you go to open an account in a bank or any financial institution for that matter, you need to give nominee details along with your personal details. The place for Nominee details is in a different place which is usually below your personal details. Or you may need to put that somewhere else.
So, why do we need to put the nominee’s details? The nominee is your trusted person or persons who act as the trustee of your fund in your absence. In case the nominee is not the legal heir, it is the responsibility of the nominee to transfer the fund to the legal heir in case the original account holder dies. A person must mention the Nominee’s details while buying insurance.
Recently, SEBI has directed every broker to supply the details of nominees of every account holder having an account with a broker. This new rule will help every investor secure the stocks lying in the Demat account through a broker. In case the stockholder dies, the Nominee will be able to transfer the proceeds to the account of the legal heir. But a Nominee cannot enjoy the benefits from the sale of invested shares. Only the legal heir can make use of it.
Having a Nominee is important to an investor. Without nomination, your invested capital may be lost if there is no Nominee. After your demise, your legal heirs have to go through a tedious and long court procedure to take possession of the assets.
Hence, you must add a nominee to your demat and trading account to save your legal heir from the harassment mentioned above.
Last Date of Adding Nominee in Demat Account
As per a recent circular from SEBI, all market participants (individuals) are required to disclose the names of their Nominees by 31st December 2023. The respective accounts are going to be blocked if the names of Nominees are not submitted within due time.
But the Zerodha account holders may not be subjected to such suspension of account, because the names of the Nominees are sent to SEBI whenever a new account is opened. Therefore, SEBI will not automatically block the accounts because it already has the nomination details of the account holders.
Let us see how one can add a Nominee to one’s own account.
Step-by-Step Guide to Add a Nominee in Zerodha
We need to follow specific steps to add a nominee to the Zerodha account.
Offline Process of Adding a Nominee in Zerodha
One needs to download the form for nomination from this link. It is in *.pdf format on the Zerodha website.
- Once you fill the form with the necessary data, you have to furnish the photocopy of the following documents.
- Aadhar Card (as the ID proof) of the Nominee. Only submit the last 4 digits 0f your Aadhar Card. It is known as the masked copy of the Aadhar Card. Download the masked copy of your Aadhar Card from here. In addition, know how to download your naked Aadhar Card from the Zerodha support portal.
- In case an Aadhar Card is not available, you need to submit a photocopy of any of the following as ID proof.
- Voter Card of the Nominee, or
- Driving License
After adding the Nominee ID proof details the filled-up nomination form and ID photocopy has to be sent to the following office of Zerodha. After you send the nomination details to the Zerodha office, it may take up to 5 working days to update your nomination details to your account.
- Contact Zerodha support, if there is any other difficulty during this process.
- Otherwise, you can create a ticket in Zerodha Console describing your difficulties in adding nominations. The support team will promptly get back to you.
The Address of Zerodha
153/154, 4th Cross, J.P Nagar 4th Phase,
Opp. Clarence Public School,
Bengaluru – 560078
All the documents need to be couriered to the above address.
Important Points to Remember While Adding a Nominne to a Zerodha Account
There are some important exceptions to remember.
- A non-individual account cannot have a nominee.
- An NRI person can add a nominee or nominees online, provided the person has a valid Aadhar Card with a valid and active telephone number linked to it.
- For adding a nominee who is still a minor, the account holder has to add the details of the guardian of the minor. The account holder cannot add own name as the guardian of the minor.
- A minor account holder cannot add the name of a guardian as nominee.
- You cannot add a charitable trust as nominee.
- Joint account holders can only add a nominee offline. An online addition of nominee(s) is not applicable to them.
- A nominee would apply only to investments made using ‘Coin‘ for mutual funds in addition to demat and trading a/c.
- In case there has been any mistake, Zerodha will send an e-mail notifying the nominee about nomination details. If the account is not active within the first 12 months of account opening, an email will be automatically sent to the nominee regarding the status of the account.
Adding a Nominee Online in Zerodha Kite
Adding a nominee to the Zerodha Kite online trading platform is quite easy. The Nominee should have an Aadhar card and an active mobile number linked to it. Then follow the steps below if the above condition is fulfilled already.
- Firstly, log on to Zerodha Console.
- Then click on Account.
- After clicking on account, click on Nominees. You can add up to three (3) nominees.
- You need to nominee details in place of the nomination details including ID and telephone number. You need to add active mobile no. linked to Aadhar Card. Mention the percentage of shares of each nominee if more than one nominee is added. You can choose the percentage details allotted to each nominee. Write 100% in the percentage of shares column if you add only one nominee.
- After completing the nomination details, click on Continue.
The E-Sign Process
- Then click on Proceed to e-sign.
- Select sign now after the e-sign option opens.
- Now, you need to fill up the e-sign space. First, accept the terms and conditions and then fill up the Aadhar details (number) of the nominee and then click on send OTP.
- An OTP will be sent to the specified mobile number of the nominee(s). Check and enter the OTP and then click on Verify OTP.
- After the process is complete, an e-mail will reach the specified e-mail ID of the nominee within 5 working days.
- An error message will appear after completion if the e-sign process is not complete.
- In such a case, kindly upload other ID documents (Voter Card, Driving license etc.) and upload the document without password protection.
- Follow the offline nomination procedure if the Aadhar Card is not linked with active mobile no. (the offline procedure described in the step-by-step guide to add nomination above).
- You can also see the other important points for adding nominations above.
Adding a Nominee in the Zerodha App
You may already know that Zerodha has a mobile app. It is also known as Kite. Here is the step-by-step guide to adding nominations through the mobile app of Zerodha.
- Log on to the Zerodha mobile app Kite.
- Click on your registered ID.
- Then click on the Support portal button.
- Now go to Your Zerodha Account.
- There you will find the Nomination button. Click on it.
- Then they will ask you to go to the console.zerodha.com, the web link.
- Then follow the procedure we already discussed under ‘Adding a Nominee in Zerodha Kite’.
Verifying Your Nominee Details in Zerodha
After completing of nomination details correctly, it is necessary to double-check whether the nomination process is complete and whether all the specific details are there under your nomination details on the website.
Therefore, you must revisit the nominee section. It is necessary to have all the documents submitted during nomination ready at hand.
Then, go to console.zerodha.com and follow the procedures below.
- Go to Accounts.
- And then go to Nominees.
- There, you can verify the Nominee details in the CMR copy.
- Also, you can download the copy for future reference.
- The CMR copy looks like the image shown below.
How to Add a Nominee in Angel One
For adding nomination details in Angel One, you have to follow a similar procedure.
- Firstly visit https://trade.angelone.in/
- Then log in to the site with our long ID, OTP (if required) and MPIN (allotted to Angel One customers).
- Then visit the Account section.
- After that click on the profile button.
- Then you come to View All Categories – Details of Nominees and more. Click on it.
After you click on the nominee section, a page will appear Add Nominee. Then fill in the nominee details. The rest of the procedure is the same as we saw in Zerodha. You need to go through every step like nominee details, nominee share percentage, e-sign, agreement to terms and conditions and every detail.
Adding a Nominee in Kotak Securities
Adding a nominee is a universal process prescribed by SEBI. Therefore, the procedure is the same for all broking companies. NSDL keeps all your trading and nomination-related details. Hence you need to follow a similar procedure if you have an account with Kotak Securities.
Adding a Nominee in HDFC Securities
HDFC Securities also lets you go through the same procedure for adding nomination details. Kindly follow the following steps to add nominees to HDFC Securities.
- Firstly log on to the HDFC Securities website using your registered credentials.
- Then go to profile or account settings.
- Go to the Nominees section.
- Add the nominee details with the percentage of shares.
- complete the e-sign procedure after accepting the terms and conditions.
- For more details visit the HDFC Securities website.
Selecting the Right Nominee for Your Investments
Now, we have seen how to add nominees to a broker. The nominee will hold all the financial responsibilities after your demise. During your absence, the owner of your property becomes your legal heir. If the nominee(s) are not your legal heir, it is the responsibility of your nominee to transfer all the assets lying in the Demat account to your legal heir.
Hence, it is necessary to choose the nominee carefully if the nominee is not the legal heir. It is you to decide the nominee so that, in your absence, your legal heir is not deprived of the right to own your properties. It is better to discuss with an experienced lawyer or a chartered accountant before you make such decisions. They are the best persons to guide you in legal and financial matters.
A Few Words to End
In the end, I can only emphasize the importance of focusing on adding nominees to your demat and trading account. If there is even the smallest doubt, clarify that with proper authorities before completing the addition of nomination. The government has decided to block all the accounts without nomination after the due date. Hence, it is only in your interest that complete all nomination details and then verify them before the last due date is over.