CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/42 March 27, 2023
To
All Recognized Stock Exchanges
All Recognized Depositories
Stock Brokers (Trading Members) through Recognized Stock Exchanges
Depository Participants through Depositories
Dear Sir / Madam,
Subject: Nomination for Eligible Trading and Demat Accounts – Extension of
timelines for existing account holders
1. SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23,
2021 had mandated providing choice of nomination details, i.e., either furnishing
of nomination or declaration for opting out of nomination for investors opening
new trading and or demat account(s) on or after October 01, 2021 and for all
existing eligible trading and demat account holders latest by March 31, 2022
failing which the trading accounts shall be frozen for trading and demat account
shall be frozen for debits.
2. Thereafter, on the basis of representations received from various stakeholders,
vide SEBI circular SEBI/HO/MIRSD/MIRSD_RTAMB/P /CIR/2022/23 dated
February 24, 2022, the timeline for mandatory submission of 'choice of
nomination' for existing trading and demat accounts was extended to March 31,
2023.
3. Based on the assessment of the trading as well as demat accounts in which
choice of nomination details (i.e. furnishing of nomination or declaration for opting
out of nomination) has not been updated and on the basis of representations
received from the stakeholders, it has been decided that the provisions
mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of
SEBI circular dated February 24, 2022 with regard to freezing of accounts shall
come into force with effect from September 30, 2023 instead of March 31, 2023.
4. Stock Brokers and Depository Participants shall encourage their clients to update
‘choice of nomination’ by sending a communication on fortnightly basis by way of
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emails and SMS to all such UCCs/demat accounts wherein the ‘choice of
nomination’ is not captured. The communication shall provide guidance through
which the client can provide his/her ‘choice of nomination’.
5. All other provisions mentioned in the circulars SEBI/HO/MIRSD/RTAMB/CIR
/P/2021/601 dated July 23, 2021 and SEBI/HO/MIRSD/MIRSD_RTAMB/P
/CIR/2022/23 dated February 24, 2022 shall remain unchanged.
6. Stock Exchanges and Depositories are advised to:
 make necessary amendments to the relevant bye-laws, rules and
regulations, operational instructions, as the case may be, for the
implementation of the above circular;
 bring the provisions of this circular to the notice of their constituents and
also disseminate the same on the website;
 monitor the efforts made by trading members and depository participants
for updation of ‘choice of nomination’ by their clients and submit a report
to this effect on monthly basis within next seven days from the end of the
month. The first such report shall be submitted by May 07, 2023 for the
month of April 2023.
7. This circular is issued in exercise of powers conferred by Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market.
8. This circular is available on SEBI website at www.sebi.gov.in under the
categories “Legal Framework -> Circulars”.
Yours faithfully,
Aradhana Verma
General Manager
Market Intermediaries Regulation and Supervision Department
Tel. No. 022-2644 9633
Email id - aradhanad@sebi.gov.in
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