As per SEBI’s revised nomination framework, you can add up to 10 nominees to a demat account. This was introduced in phases from 1 March 2025 and applies to mutual fund folios as well.
Earlier, the limit was three nominees, which was a problem for larger families or people who wanted to include parents, a spouse and several children. With up to 10 names, you can also assign a percentage to each person. If you leave the percentages blank, the holdings are generally split equally.
Say a hypothetical investor holds 1,000 shares and names four nominees at 40%, 20%, 20% and 20%. On transmission, the depository divides the shares roughly in that ratio. Odd quantities that cannot be divided cleanly are handled as per depository rules, which is why some people prefer round percentages.
Two practical tips. Keep each nominee’s PAN, address and contact details correct, since missing information can delay a claim. And tell at least one family member which broker you use; a nominee who does not know the account exists cannot claim it.
Because the framework rolled out in stages, check your broker app or the latest SEBI circular for exactly what is live. Account and settlement basics form part of the first module in our stock market diploma.