Zerodha gave the example of LIC on unclaimed money. How to avoid it in stock trading

“LIC was 21,539 crore unclaimed money till September 2021.
Please ensure that you add a nominee to your Zerodha Demat, it is completely online. You just need to add one nomination for all your investments- stocks, bonds and mutual funds,” Zerodha said in a tweet.

Last year, Zerodha enabled the facility for investors to file or change nominations online on its platform. If the client’s account becomes inactive due to lack of activity for more than one year, the brokerage will contact the nominees over SMS and email to inform about the existence of the account.

Investors can add nominees on Zerodha by visiting the console. If one is adding more than one nominee, they have to mention the % of holding to be allotted to each nominee so that the total is 100%.

Many deposits go unclaimed, most likely because the nominees are not aware of the existence of these assets, highlighted the brokerage in a blog and expects its alert feature to protect all its assets in case of any force majeure. Will act as a backup for customers.

Also, since we offer direct mutual funds in demat form on Coin, this enrollment will automatically cover all your mutual fund holdings as well as all other securities held by you with us.

While demat account opening went digital in 2016 (using Aadhaar e-sign), adding of nominees has been a physical process till now. This is because the process of nomination as defined by the MCA mandates a physical form and the collection of multiple witness signatures. The rule around this has changed as SEBI has given an option to add 3 nominees in a completely online trading and demat account using e-sign.