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Nomination For Mutual Funds Is No Longer Required By SEBI

The Securities Exchange Board of India recently announced that the nomination process for holders of mutual fund units is now optional. The decision to offer a nomination or to renounce it by filing a declaration form is now up to the investors. After August 1, 2022, investors will be subject to this.<br><br>Know more: https://enterslice.com/registration-of-mutual-fund-with-sebi-india<br>

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Nomination For Mutual Funds Is No Longer Required By SEBI

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  1. SEBI makes nomination optional for mutual funds

  2. SEBI makes nomination optional for mutual funds In the recent notification released by the Securities Exchange Board of India has started the mutual fund unit holders’ nomination has been made optional. It is now to the investors whether they want to provide a nomination or opt out of it by submitting a declaration form. This shall be applicable to investors post the 1st of August, 2022. The regulator has given all the asset management companies a deadline of the 31st of March, 2023 for the option regarding nominating and opting out of nomination of mutual fund unitholders either solely or jointly. If the unitholders fail to update the necessary details, then their folios shall be frozen. SEBI has stated that the nomination forms must be provided to unitholders in digital and physical forms. In the case of physical form, the signature should be made in writing. In the case of digital form, an E-signature form must be used. The notification said, “All AMCs shall ensure that adequate systems are in place for providing the e-Sign facility and take all necessary steps to maintain confidentiality and safety of client records,” Before the release of this circular, nominations were mandatory for unitholders if they wanted new investments. This new move is introduced to bring uniformity in all the practices across the securities market. Even in the year 2021, SEBI had this option for investors who were opening new Demat accounts.

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