Investors opening new trading, demat account from Oct to get choice of providing nomination: Sebi

However, if the accountholder affixes thumb impression instead of wet signature, then witness signature will be required in the forms.The online nomination and declaration form may also be signed using e-sign facility and in that case witness will not be required.

Markets regulator Sebi on Friday said investors who are opening new trading and Demat accounts from October 1 will have the choice of providing nomination or opting out of the nomination.

Also, the regulator has issued a format for nomination form and opting out of nomination through a 'declaration form' in this regard, according to a circular.

Further, all existing eligible trading and Demat account holders will have to provide a choice of nomination by March 31, 2022, failing which the trading and Demat accounts will be frozen, Sebi said.

Under the new framework, trading members and depository participants will activate new trading and Demat accounts from October 1, 2021, only upon receipt of such forms.

The nomination and declaration form will be signed under the wet signature of the account holder and a witness will not be required. However, if the accountholder affixes thumb impression (instead of wet signature), then the witness' signature will be required in the forms.

The online nomination and declaration form may also be signed using an e-sign facility and in that case, the witness will not be required. Intermediaries will have to ensure that adequate systems are in place including for providing an e-sign facility and also take all necessary steps to maintain confidentiality and safety of client records.