Mutual Fund Nomination Deadline Extended By Six Months. Check Details

The Securities and Exchange Board of India (SEBI) has extended the last date for mutual funds investors to specify nominee details to September 30, 2023, from March 31, 2023.

In order to avoid their accounts being frozen, the capital market regulator had earlier made it mandatory for mutual fund subscribers to submit the nomination details or declaration to opt out of the nomination by March 31, 2023.

“Based on representations received from the market participants, it has been decided that the provision… with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead of March 31, 2023,” the SEBI said in its latest circular.

SEBI had first released a circular on June 15, 2022, making it mandatory for mutual fund subscribers to submit the nomination details or declaration to opt out of the nomination on or after August 1, 2022. Later, the deadline was extended to October 1, 2022.

Asset Management Companies (AMCs) and Registrar and Transfer Agents (RTAs) were asked to encourage the unitholders 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 unitholders who are not in compliance with the requirement of nomination.

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The framework for submitting nominations and opting out of it has been laid down by SEBI. The mutual fund houses have been instructed to provide online and offline (physical) facilities to the mutual fund investors so that they may submit nomination requests or indicate their desire to decline a nomination.