SEBI requires nomination or opt-out for single-holder demat and MF
SEBI is rolling out a new rule from September 1, 2026: if you have a single-holder demat account or mutual fund folio, you will need to either add a nominee or officially opt out.
The goal? To make things way smoother for your family if something happens to you (no more paperwork headaches for your heirs).
This applies to both new and existing accounts.
Three nominees allowed or opt-out
You can pick up to three nominees and decide what share each gets; if you skip the details, it is split equally.
Joint accounts do not need this step, but changing nominations means everyone on the account has to agree.
If you would rather not nominate anyone, just submit an online opt-out form through your broker or bank.
And if there is no nominee, SEBI has made it easier for legal heirs to claim assets (up to ₹10,000 for physical holdings and up to ₹30,000 for dematerialised holdings), so things do not get stuck in red tape.