Nominees for MF investors: Market regulator SEBI has extended the deadline for adding nominees till December 31. The deadline was ending on 30 September.
Nominees for MF investors: There is big news for mutual fund investors. Market regulator SEBI has extended the deadline for adding nominees till December 31. The deadline for all individual demat account holders and mutual fund investors (MF investors) to nominate their successor or opt out of the scheme by filling a declaration was ending on September 30.
Let us tell you that it is mandatory for investors to add nomination in Demat Accounts. Failure to do so will result in the folios being frozen, meaning they will be ‘frozen’ and they will not be able to withdraw their investments.
It is mandatory to give nominee while opening trading-demat account.
This will ensure smooth and seamless transfer of securities to the legal heirs of investors in case of any unfortunate event. According to the new SEBI rules, new investors will have to give ‘nomination’ for their securities while opening trading and demat accounts or opt for an exit through a declaration.
If existing investors fail to meet this deadline, their folios will be frozen and they will not be able to withdraw their investments from it. Apart from this, the demat accounts or mutual fund folios of the investors will remain ‘frozen’ till then. Unless they enroll or opt out.
Benefits of adding nominee
Market experts say that in the past many investor accounts have been opened without nominating anyone. In such a situation, there is difficulty in transferring the asset to the rightful heir. In such a situation, this step is very good and it will get rid of the difficulties in asset transfer.
