SEBI New Guidelines: SEBI has issued its new guidelines. Under this, an investor can make a maximum of 10 persons as nominees in a demat account or mutual fund folio.
SEBI New Guidelines: The Securities and Exchange Board of India (SEBI) has made a major change in the rules related to nomination in mutual funds and demat accounts. Under this, an investor can now nominate a maximum of 10 persons 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 quarrel 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. You will also have to disclose your relationship with the nominee. SEBI has also said that the investor’s Power of Attorney (POA) will not have the right to declare a 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 remain 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 the assets to the registered nominee.
- Self-attested copy of 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 a record of nominee and acknowledgement for eight years after the transfer of the account or folio.
This is the rule for physically disabled investors
Under SEBI’s new guidelines, if the investor is physically disabled, then the mutual fund or broker will have to give the option of handling the account to one of the nominees made by him. Not only this, if the investor wants, he will also be able to select a specific percentage and total value of the assets in his account / folio for such nominee.
In this situation, it will be necessary for the asset management companies (AMC) to take the approval of the physically disabled person personally. The most important thing is that the withdrawn funds can be made only in the registered bank account of the investor. No changes can be made in the contact details or linked accounts already given.
