SEBI won't freeze demat accounts, MF folios over nomination non-submission
The Securities and Exchange Board of India (SEBI) has announced that it will not freeze demat accounts and mutual fund folios of investors who have not submitted their nominations. This decision was made in response to feedback from market participants, who highlighted the need for easier compliance and increased investor confidence. The market regulator also clarified that investors holding physical securities can still receive dividends, interest, or redemption payments, and lodge complaints without providing a nomination.
SEBI extends deadline for mutual fund investors
SEBI had previously set a deadline of June 30, 2024, for mutual fund investors to complete or update their nominations. However, the market regulator has now extended this deadline until further notice. The decision to extend the deadline was made to ensure that investors have ample time to comply with the new regulations without facing any penalties or account freezes.
New investors must provide nomination details
While existing investors are not required to provide nomination details, SEBI has made it mandatory for all new investors to do so. This rule applies to both demat accounts and mutual fund folios, with the exception of jointly held accounts. The market regulator has provided formats for submitting nomination details or opting out of nominations. SEBI has also stated that it will send fortnightly reminders via SMS and email to investors who have not yet provided their nomination details.
