How to opt out of nomination on Zerodha

From WebNotes, a public knowledge base. Last updated 12 May 2026. Reading time ~5 min. Level: Beginner.

This guide explains how to formally declare the opt-out of nomination for a Zerodha demat account, as required by SEBI’s 2022 circular that mandates all demat account holders either register a nominee or submit a signed opt-out declaration.

Prerequisites

An active Zerodha demat and trading account.
The Aadhaar number of the account holder and access to the Aadhaar-registered mobile number for OTP receipt.
Understanding that opting out does not designate any person to receive the securities in the event of the account holder’s death. The securities will be distributed to legal heirs through the court or succession process, which is typically longer and more document-intensive than a nomination-based transmission. This is an informational note, not a recommendation; the account holder is free to opt out if they choose.
Joint demat accounts: each joint holder must complete their own opt-out or nominee registration separately, depending on the depository’s instructions and Zerodha’s implementation. Confirm the requirement for joint accounts with Zerodha support.

Step-by-step procedure

Step 1: Understand the SEBI opt-out mechanism

SEBI’s circular (SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/186, November 2022) gave demat account holders a choice:

Register a nominee: Name one or more individuals who will receive the securities in the event of the account holder’s death (see how to add a nominee on Zerodha).
Opt out of nomination: Submit a signed declaration confirming that the account holder is knowingly choosing not to register a nominee.

Both choices satisfy SEBI’s requirement. Accounts that did neither were flagged and had debit transactions frozen. If the account is currently frozen for this reason, completing the opt-out declaration will lift the freeze.

The opt-out is a legitimate choice, particularly for account holders who prefer to rely on their Will and the legal succession process rather than the nomination mechanism. A nominee is not a legal heir; the nominee holds securities as a trustee for legal heirs. Some account holders with complex family or estate arrangements choose opt-out to avoid any ambiguity in the nominee’s role.

Step 2: Log in to Console and navigate to Profile

Go to console.zerodha.com and log in with the Zerodha user ID and password. Click Account and select Profile. Scroll to the Nomination section. If the section shows “Nomination pending” or a freeze notice, this confirms that neither a nominee has been registered nor an opt-out has been submitted.

Step 3: Select the opt-out option

In the Nomination section, look for a button or link labelled “I wish to opt out of nomination”, “Opt out”, or an equivalent label. Click it. A screen with the SEBI-mandated opt-out declaration is displayed.

Step 4: Read the opt-out declaration

The opt-out declaration typically states:

“I/We [account holder name] do hereby declare that I/we have been made aware of the facility of nomination as per SEBI regulations and am/are knowingly opting not to nominate any person for the demat account held with [depository participant]. I/We understand that in the absence of a nominee, the securities will be transmitted to my/our legal heir(s) as per the applicable law.”

The declaration is a regulatory requirement. It cannot be modified; it must be accepted as written. If the account holder intends to change their mind and register a nominee later, they can do so at any time by following the process in how to add a nominee on Zerodha.

Step 5: Sign via Aadhaar e-sign

Click Proceed to e-sign (or the equivalent button) to proceed to the electronic signature step.

Enter the 12-digit Aadhaar number of the account holder.
Click Request OTP.
An OTP is sent to the Aadhaar-registered mobile number.
Enter the OTP within the validity window to apply the e-sign to the opt-out declaration.

The Aadhaar-based e-sign is legally valid under the Information Technology Act, 2000. The signed opt-out declaration is stored by Zerodha and CDSL or NSDL as part of the account record.

Step 6: Confirm opt-out status

After the e-sign is applied, Console updates the Nomination section to show the opt-out status and the date of the opt-out declaration. An email confirmation is sent to the registered email address. If the account was frozen due to the absence of a nomination decision, the freeze is lifted, typically within one business day of the opt-out e-sign being processed.

The opt-out declaration remains in effect until the account holder either files a new opt-out declaration or registers a nominee. There is no expiry on the opt-out declaration.

What can go wrong

Account still frozen after opt-out: The freeze removal is processed by the depository (CDSL or NSDL) after Zerodha submits the opt-out instruction. This typically takes one business day. If the account is still frozen after 48 hours, contact Zerodha support with the opt-out confirmation email and request manual clearance.
Aadhaar OTP not received: If the Aadhaar-registered mobile number is inactive or unavailable, the e-sign cannot be completed. Update the Aadhaar mobile number at an Aadhaar Seva Kendra before attempting the opt-out sign.
Opt-out completed but nominee later needs to be added: If life circumstances change (marriage, children, estate planning), the account holder can add a nominee at any time by going to the Nomination section and following the how to add a nominee on Zerodha process. The new nomination supersedes the opt-out.
Joint account holders not aligned: For a joint demat account, the depository may require all joint holders to submit an opt-out declaration or nominee registration. If only one holder acts, the account may remain flagged. Confirm the requirement with Zerodha support for joint accounts.

How to add a nominee on Zerodha - Registering a nominee instead of opting out
How to update a nominee on Zerodha - Modifying or replacing an existing nominee registration
Zerodha nominee process overview - Full regulatory context for nomination in demat accounts
How to re-KYC an existing Zerodha account - KYC renewal that may be required alongside the opt-out step
How to verify PAN and Aadhaar e-sign with Zerodha - Troubleshooting the Aadhaar OTP and e-sign process
Demat account overview - How dematerialised securities are held and what happens to them after the account holder’s death

References

SEBI Circular on mandatory nominee registration or opt-out for demat accounts (SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/186, 25 November 2022).
CDSL Circular on implementation of SEBI nomination mandate (CDSL/OPS/DP/POLCY/2022/706, December 2022).
Indian Succession Act, 1925, Sections 109 and 116 (nominee versus legal heir distinction).
Information Technology Act, 2000, Section 3A (Aadhaar-based e-sign validity).
Zerodha Console nomination and opt-out page: console.zerodha.com (accessed May 2026).

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 12 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.

Time required	5 minutes
Documents needed	Aadhaar number and OTP access for e-sign
Cost	Free