India's SEBI mandates nominee or opt‑out for new single‑holder demat accounts from 2026

The Securities and Exchange Board of India (SEBI) has revised its nomination framework for demat accounts and mutual‑fund folios. Effective 1 September 2026, every new single‑holder demat account or mutual‑fund folio must include a nominee or an explicit opt‑out declaration; joint accounts remain optional. Investors can nominate up to three persons, and if no share percentages are specified, holdings will be split equally among nominees.

The new rules simplify paperwork: only the nominee’s name and relationship are mandatory, while KYC details, contact information and percentage allocations are optional. Witness signatures are no longer required for regular signatures, and digital nomination is encouraged via e‑sign, Aadhaar‑based e‑sign, digital signatures or OTP verification. Depository participants and mutual‑fund registrars must acknowledge each nomination or change and send periodic email and SMS reminders to investors without nominees. SEBI says the changes aim to ease onboarding, reduce the build‑up of unclaimed securities and improve the transmission of assets to legal heirs.