Do you have a mutual fund or demat account..? Be ALert..!

No matter how much you plan and invest your hard-earned money and multiply it many times, it will become complete only if it is properly managed and added to our family. For example, when taking a life insurance policy, whether it is a large amount or a small amount, it will be complete only if it goes to the right person after the death of the policyholder. To ensure this, RBI and SEBI have made it mandatory to appoint a nominee for all long-term schemes, from bank accounts to stock market investments. Through this, all mutual fund investors and demat account holders should be nominated as per the order of SEBI by 31st december or can withdraw the nomination as per the individual's choice.
 Whatever it is, SEBI has directed that it be done by december 31. Nomination for an investment is not mandatory but also a way to easily transfer the assets of your investment to your family or a loved one, otherwise it is very difficult to transfer the assets and investment. This will cause great hardship to your family in your absence and to avoid this, the RBI has mandated proper nomination for all financial investments and savings. The next important question is what happens if the nomination is not made, now SEBI has mandated nominations for Demat accounts and mutual fund schemes by december 31st. Failure to do this may result in SEBI freezing your mutual fund and demat accounts, preventing withdrawals. For example, you cannot withdraw money from a mutual fund scheme or buy or sell shares in a demat account. There is a risk of losing your money altogether. The SEBI first notified this in june 2022 and then extended the period several times and now december 31 is the last date.
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Sowmiya Sriram

22/12/2023 06:12 PM