Give nominee details for mutual funds by this date to avoid MF folio getting frozen
nomination before September 30, 2023 failing which their folios will be frozen for debits.
The last date for mutual funds investors to specify nominee details is September 30, 2023.
Through a circular on March 28, 2023, the Securities and Exchange Board of India (Sebi) said, «Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead of March 31, 2023.»
Also read: Mutual fund nomination deadline of March 31 extended; check details
Option to opt- out nomination
Those who don't want to submit nominations can submit an opt-out declaration to prevent the units in mutual funds from being frozen. Investors who wish to opt in or out of nomination but have not yet submitted their nomination information may do so by visiting the trading platforms of stock brokers or depository participants who offer this service.
In case of joint account
If more than one person holds joint ownership of the Units, all joint unit holders must get together and name a person to whom the rights to the Units would pass in the event that all joint unit holders passed away.
According to the Association of Mutual Fund India (Amfi India) website, “CAMs & KFintech have enabled the facility to update nomination details online for all individual investors with non-demat folios”
Also read: 7 money changes in September; Changes in credit cards, small savings rules, Aadhaar free update, Rs 2,000 exchange deadlines
What is nomination in mutual funds?
According to the Association of Mutual Funds in India (AMFII), “Nomination is a facility that enables an individual to
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