I have a few bonds in my demat account and realised I never added a nominee. My wife is the nominee on my bank accounts and my mutual funds but I am not sure if the same nomination applies to demat holdings. And I have been meaning to write a will anyway. Should I be doing both or is one sufficient? Disc: not asking for legal advice, just trying to understand how this works practically.
The nomination on your demat account and a will serve different purposes and ideally you want both. The demat nominee is a procedural convenience. When you pass away the nominee can claim the assets held in your demat, including bonds, without going through a lengthy legal process. They do not even need to involve a court. They file a claim with the depository participant and the assets transfer to them. It is designed for speed and simplicity during an already difficult time.
So the demat nomination is separate from my bank account nomination?
Yes, entirely separate. Your bank account nomination and your demat nomination are two independent records. Updating one does not update the other. You need to add your wife as nominee specifically on your demat account through your broker’s portal or by submitting a physical form if they require it. Most online brokers like Zerodha, Groww, and Angel One allow you to add or update nominees directly in the app settings.