Sebi Extends Deadline To Add Nominees In Mutual Funds, Demat Accounts; Check New Dates

New Delhi: Markets regulator Sebi has announced that it has extended the deadline to add nominations in demat and mutual fund till June 30 next year from the previous deadline of December 31.

The deadline to nominate a beneficiary or opt out of it was to be submitted by December 31, 2023 previously.

"Based  on  representations  received  from  the  market  participants, for  ease  of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat  accounts and  mutual  fund folios to June 30, 2024," a Sebi circular said.

The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.

Sebi has also asked depository participants, asset management companies (AMCs), and Registrar and Transfer Agents (RTAs) to encourage the demat account holders and mutual fund unit holders to fulfil the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.

The communication should provide guidance to provide nomination or opt out of nomination, Sebi added.

Sebi has also advised Stock Exchanges, Depositories, AMCs, RTAs and Listed Companies to take  necessary  steps  to  implement  the  provisions  of  this  circular, including  making  necessary  amendment  to  the  relevant  bye-laws  / business rules / regulations / operational instructions, as the case may be and bring  the  provisions  of  this  circular  to  the  notice  of  their  respective constituents and also disseminate this circular on their websites

Sebi has asked that it be communicated about the   status   of   the   implementation   of   the provisions of this circular and monitor the compliance of this circular.