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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL issues Standard Operating Procedure to enable Nomination Facility in case of incapacitate investors

25-Aug-2025 | CDSL/OPS/DP/POLCY/2025/567

CDSL has issued the communique regarding Revise and Revamp nomination facilities - Standard Operating Procedure on Nomination.

Through this communique, CDSL has announced the creation of a Common Standard Operating Procedure (SOP) by Depositories and AMFI (Association of Mutual Funds in India), to ensure uniformity in handling incapacitated investors, as well as those with special needs, or who are elderly or unwell, within the securities market.

The term "incapacitation" here refers specifically to physical incapacitation, where the individual still retains the legal capacity to enter into a contract as defined under Section 11 of the Indian Contract Act, 1872. Accordingly, this SOP does not cover investors who are otherwise incapacitated due to being in a coma, unconscious, or dependent on ventilator support.

Furthermore, the procedure to be followed by registered intermediaries for operating accounts in the case of an incapacitated investor is detailed in Paragraph 3 of the Annexure.

DPs are advised to ensure compliance with the SOP and make it available on their website.

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