SEBI extends deadline for demat accounts and mutual funds nomination; Check new date here
Capital markets regulator Securities and Exchange Board of India (SEBI) on Wednesday extended the deadline for demat and mutual fund account holders to provide a nomination. As per the market regulator, the deadline has now been extended to 30 June 2024.
Earlier, the deadline to nominate a beneficiary or opt out of it by submitting a declaration form was December 31, 2023. Prior to this, on 26 September, SEBI had extended the deadline to 31 December.
The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.
“Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024,” the Securities and Exchange Board of India (SEBI) said in a circular.
Further, SEBI asked asset management companies (AMCs), depository participants and Registrar and Transfer Agents (RTAs) to encourage the demat account holders and mutual fund unit holders to fulfil the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.
The communication should provide guidance to provide nomination or opt out of nomination.
Here’s how to add a nominee to demat account
- Go to the NSDL’s portal, nsdl.co.in
- On the homepage, click on ‘Nominate Online’ option
- A new page will open and ask for your DP ID, client ID, PAN, and OTP
- After entering the details, you will see two options: ‘I wish to Nominate’ and ‘I do not wish to nominate’
- When you opt to add a nominee, a new page will open seeking the nominees’ details.
- e-sign using Aadhaar. OTP on the mobile number registered with UIDAI
Here’s how to add a nominee for MF folios
- Nomination for mutual funds can be done at the time of starting investment or even later.
- To update mutual fund nominations online, one needs to visit the Mutual Fund house’s official web portal or NSDL website.
- A maximum of 3 people can be added as a nominee in a mutual fund
- At the time of nomination, you can also tell how much share is to be given to each nominee.
- The nomination form must be signed by all the unit holders.
- If you have invested in a fund through a demat account and the units are held with the depository, then the nomination details submitted by the unit holder with the depository will apply to the mutual fund holding also.