The deadline for updating the nomination for mutual fund investments, trading, and Demat accounts is September 30. Sebi had earlier extended the deadline from March 31, 2023.
The regulator made it mandatory for the nomination of mutual fund investments last year.
On June 15, 2022, Sebi made the nomination mandatory for the existing mutual fund folios, including the jointly held ones by August 1, 2022. The deadline was then extended to October 1, 2022, then to March 31, 2023, and then to September 30, 2023.
Nomination is choosing someone to be the custodian of your investments in the unfortunate event of death.
Not nominating (either positively or negatively) by the due date may lead to investors’ accounts being frozen or restricted from some transactions.
For Demat-linked mutual funds, the nominee applicable to the Demat account also applies to mutual fund investments. CAMs and KFintech have enabled the facility to update nomination details online for all individual investors with non-demat folios.In most cases, a PAN number and OTP would be enough to update the nomination, with physical forms required in some instances.
If investors have a joint account, all joint unit holders are required to nominate a person together. All joint holders must be KYC-compliant for the nomination update to happen online.
Nomination once made can be changed subsequently any time and any number of times.
If investors have a distributor or a registered investment advisor in MFs, he/she would usually take care of the nomination process.
The nominee only serves as a custodian of assets after the demise of the account holder. To prevent potential disputes in the future, it is advisable to designate a legal heir as
the nominee.
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
