Joint Demat Account in India: Rules, Rights, Nomination and What Happens When One Holder Dies

A joint demat account in India allows up to three holders to co-own securities. All holders sign the account opening form. Mode of operation determines who can transact. SEBI RA INH000013776.

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How a Joint Demat Account Works in India

A joint demat account functions much like a single-holder demat account in terms of how securities are held and traded, but with multiple registered owners. The demat account statement shows all joint holders’ names and the securities are owned jointly in the proportions specified during account opening (or equally if no proportion is specified).

In a joint demat account, the first holder’s PAN and bank account are typically used for all financial transactions including dividend credits and fund transfers. All correspondence from the DP is addressed to the first holder’s registered address. The first holder is also the primary point of contact for the DP for any account-related communications.

Operation Modes for a Joint Demat Account

The mode of operation in a joint demat account determines who must sign or authenticate transaction instructions.

Mode of operation	Who can transact	When to use
Either or Survivor	Any single holder can authorise transactions independently	For couples or partners who each want the ability to transact without the other’s co-signature
Jointly	All holders must sign or authenticate every instruction	When both or all holders want joint control and mutual oversight of every transaction
First holder only	Only the first holder can authorise transactions	When one holder is designated as the primary manager of the joint demat account

Nomination for a co-owned account

Under the demat account nomination rules 2026 (SEBI May 2026 circular), a joint demat account can have up to three nominees. However, as discussed above, nomination in a co-owned account only applies after all joint holders have died. As long as at least one joint holder is alive, the surviving holder inherits the co-owned account.

Every joint demat account should have an updated nomination under the new rules. If no nominee is added and all joint holders die without a surviving holder, the legal heir route for demat account transmission applies, which is the most complex and time-consuming process. Adding a nominee to a co-owned account is a simple step that protects all holders’ families.

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What Happens When One Holder of a co-owned account Dies?

When one holder of a co-owned account dies, the surviving holder takes over the account through the demat account transmission process. The surviving holder must submit a transmission request to the DP along with the deceased holder’s death certificate. The DP then deletes the deceased holder’s name from the co-owned account records.

It is important to note that the name of a deceased holder cannot simply be ‘deleted’ from a co-owned account without a formal transmission request. The surviving holder should submit the required documentation promptly to ensure uninterrupted access to the co-owned account. Until the transmission is processed, the surviving holder’s ability to transact depends on the mode of operation.

Can You Change the Holders or Order in a co-owned account?

Changing the first holder, adding or removing a holder from an active co-owned account is not a simple administrative update. It is treated as a change in beneficial ownership, which typically requires closing the existing co-owned account and opening a new one with the revised set of holders. This is a key limitation that investors should consider before opening a co-owned account.

If you need to change the composition of a co-owned account’s holders, consult your DP for the prescribed process. The DP will guide you through the correct procedure, which may involve off-market transfer of securities to a new co-owned account with the correct set of holders.

Opening a co-owned account at Univest

Univest is a SEBI-registered platform (SEBI RA Reg. No. INH000013776) linked to CDSL. For queries about opening a co-owned account at Univest and the current process for adding a second or third holder, refer to the official Univest website at univest.in or contact Univest support directly.

When opening a co-owned account, all holders must complete their individual KYC with the same DP. For a co-owned account linked to Univest, ensure all holders have valid PAN, Aadhaar and bank account details ready. The nomination update for the co-owned account should be completed immediately after opening under the demat account nomination rules 2026.

Conclusion

A co-owned account is a flexible and legally recognised way for two or three individuals to co-own securities in India. Choose the operation mode that matches your needs, keep the nomination updated under the May 2026 SEBI rules and ensure the surviving holder knows the transmission process in case of a joint holder’s death. A co-owned account with a clear nomination and the right operation mode minimises administrative complications for every co-holder’s family.

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Frequently Asked Questions

What is a joint demat account?

Ans. A co-owned account is a demat account held by two or three individuals who co-own the securities in the account. All holders sign the account opening form and provide individual KYC. Transactions are authorised based on the mode of operation agreed at the time of opening the co-owned account.

How many holders can a joint demat account have?

Ans. A co-owned account in India can have up to three holders: a first holder and up to two additional holders. The first holder’s PAN and bank account are used for financial transactions. All three holders must complete individual KYC to be part of the co-owned account.

What are the operation modes for a joint demat account?

Ans. The main operation modes for a co-owned account are: Either or Survivor (any holder can transact independently), Jointly (all holders must co-authorise), and First Holder Only (only the first holder can transact). The mode of operation in a co-owned account is chosen at the time of account opening and can be changed by submitting a form to the DP.

What happens when one holder of a co-owned account dies?

Ans. When one holder of a co-owned account dies, the surviving holder submits a transmission request to the DP with the deceased holder’s death certificate. The DP removes the deceased holder’s name from the co-owned account records. Nomination applies only after the last surviving holder dies.

Can I add a nominee to a co-owned account?

Ans. Yes. Under the demat account nomination rules 2026, a co-owned account can have up to three nominees. Nominees in a co-owned account inherit the securities after all joint holders have died. Adding a nominee to a co-owned account is important for protecting the interests of the holders’ families.

Can I change the holders in a co-owned account?

Ans. Changing the holders or holder order in an active co-owned account is not a simple update; it is treated as a change in beneficial ownership. The typical process involves closing the existing co-owned account and opening a new one with the revised set of holders, then transferring securities via an off-market transfer. Consult your DP for the current procedure.