Every investors will have to nominate up to three nominees per demat account or mutual fund portfolio from September 01, 2026. No new demat account or mutual fund portfolio will be allowed to operated in single mode without a nomination, unless they submit a format request to opt out of nomination.
Capital market regulator Sebi’s new guidelines on nomination of demat and mutual fund folio will kick off from September 01, 2026. They aimed at mproving the ease of investing and simplifying nomination procedures while reducing unclaimed assets.
What Are Key Changes From September 01:
1. Up to three nominees
A maximum of three nominees will be allowed per demat account or mutual fund portfolio.
They will be permitted to add, modify, or cancel nominations any number of times.
Investors will be able to submit nomination requests in online and offline modes.
2. Nomination to be made mandatory for all new singly-held demat accounts and MF folios
Starting September 1, new demat accounts or mutual fund portfolios will not be allowed to be operated in single mode without a nomination in place, unless they submit a formal request to opt out of nomination.
3. Optional nomination for jointly-held demat accounts and MF folios
In case of joint demat accounts and MF portfolios, nomination will continue to be optional. In other words, it will not be compulsory for jointly-held demats and folios to declare nomination.
4. Joint holders’ consent to be mandatory for adding/changing nominees
All operators of jointly-held accounts or folios will be required to give consent for adding or changing nominees regardless of operating mode.
5. Option for nominees to continue account/folio after investor’s death
In case an investor dies, nominees will be able to either continue the same demat or MF portfolio or open separate accounts for their respective assets.
Which Two Modes Will Be Available?
In online mode, validation will be done through digital signature, Aadhaar-based e-sign, or two-factor authentication using OTP on registered mobile number and email.
In offline mode, nomination forms will not require witness signatures if signed normally. However, thumb impressions must be witnessed by two individuals.
How To Nominate A Nominee In Demat Account Or MF Folio?
1. How to add a nominee to your Demat account
Your exact buttons will depend on your broker — for example, Zerodha, Angel One, Groww, Upstox, etc. But the process is generally:
Step 1: Open your broker app/website
Log in to your demat/trading account.
Step 2: Go to Profile/Account
Profile → Account → Nomination
The exact name varies by broker.
Step 3: Select “Add Nominee”
You will generally see an option such as:
- I wish to nominate
- Opt out of nomination
Choose I wish to nominate.
SEBI allows investors to either nominate someone or explicitly opt out.
Step 4: Enter nominee details
Keep these details ready:
- Nominee’s full name
- Relationship with you
- Date of birth
- Address
- PAN/identity details, where required
- Percentage of share
You can generally have up to 3 nominees for a demat account.
Step 5: If nominee is a minor
You can nominate a minor, but you will need to provide guardian details.
Step 6: Complete OTP/e-sign
The broker will ask you to authenticate the request, generally through OTP/e-sign.
After successful submission, check:
and confirm that the nominee is showing.
How to add nominee to Mutual Funds
This depends on where you hold the mutual fund.
There are two common situations:
Situation A — Mutual fund bought through your broker/app
For example, you bought an MF through a platform such as Angel One, Groww, Zerodha, etc.
- Go to:
- App → Mutual Funds → Profile/Account → Nomination
- Then:
- Add Nominee → Enter details → Allocate percentage → OTP/e-sign → Submit
But remember: the nominee facility can vary depending on whether the MF is held in demat form or directly as a mutual-fund folio.
Situation B — Mutual fund is held directly as a folio
For example, you invested directly with an AMC and have a folio number.
You can update nomination through the AMC/RTA.
For KFintech-serviced funds, there is an online nomination update facility for eligible individual investors. It asks for PAN/contact verification, folio selection and nominee details.
- Typical KFintech process
- Open KFintech’s investor portal.
- Enter your PAN.
- Verify through OTP.
- Select the folio/funds.
- Choose Opt-in Nomination.
- Select number of nominees.
- Enter nominee details.
- Enter the percentage for each nominee.
- Complete OTP authentication.
- Submit.