Demat account holders, MF investors alert! Deadline to add nominee ends on 30 Sept

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Securities and Exchange Board of India (Sebi) has informed that the deadline to file a nominee or opt out of it for all individual demat account holders and mutual fund investors ends on 30 September. Sebi has said that failing to comply within deadline will result in frozen accounts and folios. The move by Sebi aims to help investors secure their assets and pass them onto their legal heirs.

The market regulator has also informed that the mandate of nominating a beneficiary applies to new as well as existing investors. Under Sebi's rule, new investors must either nominate their securities or formally opt out of nomination through a declaration form when opening trading and demat accounts. Exciting news! Mint is now on WhatsApp Channels :rocket: Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! For existing investors, including jointly-held mutual fund folios, failing to meet this deadline will result in the freezing of folios for debits.

Further, investors' demat accounts or mutual funds folios will be frozen and inaccessible until they nominate or declare opt-out. In July 2021, Sebi had asked all existing eligible trading and demat account holders to provide choice of nomination on or before March 31, 2022, failing which the trading and demat accounts would have been frozen for debits. Later, this was extended by one more year till 31 March 2023.

With regards to mutual fund unitholders, the regulator in its circular on 15 June 2022, made it mandatory for mutual fund subscribers to submit the nomination details or declaration to opt out of the nomination on or after 1 August, 2022. Later, the deadline was extended to 1 October 2022, and again till March 2023. Based on