The Securities and Exchange Board of india (SEBI) has made a big change in the rules related to nomination in mutual funds and demat accounts. Under this, an investor can now make a maximum of 10 persons as nominees in a demat account or mutual fund folio. This new rule will be effective from march 1, 2025.
This is mentioned in SEBI's new guidelines
The purpose of this change by SEBI is to reduce unclaimed assets and ensure better management of investments. Many times, in case of death of the investor or serious illness, either there is a dispute among the family members regarding the investment or no one claims the amount. SEBI has taken this step to settle this. However, for this it will be necessary to provide complete details of the nominee such as phone number, email, address, Aadhaar number, PAN number, driving license number etc. Overall, all the details related to the personal information of the nominee will have to be given. Along with this, your relationship with the nominee will also have to be told. SEBI has also said that the investor's Power of Attorney (POA) will not have the right to declare the nominee.
Along with this, according to the new rules issued for the nominee, the person nominated in the mutual fund and demat account can either be a joint holder with other nominees or can create a separate folio or single account for their respective share. Along with this, these documents will be required to transfer assets to the registered nominee.
Self-attested copy of the death certificate of the deceased investor
KYC of the nominee should be properly completed
Due discharge from creditors
SEBI has ordered regulated entities like mutual fund houses and depositories to give investors the option to submit nomination forms both online and offline. Along with this, the investor will get an acknowledgement on every nominee submission, which will maintain transparency in the entire process. Apart from this, regulated entities will have to maintain the record of nominee and acknowledgement for eight years after the transfer of the account or folio.
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