Nomination now optional for joint mutual fund portfolios; what MF investors must know
At present, the deadline for all current individual unit holders who own mutual fund units, either alone or jointly, nominate or opt out of nomination is June 30, 2024; otherwise, the folios will be blocked for debits.
Mutual fund unit holders must provide nomination details in a specified format and opt out of nomination through a prescribed declaration form. If a holder does not nominate or opt out of nomination by 30 June 2024, folios/demat account will be frozen.
According to the Sebi circular, “It has been decided that the requirement of nomination specified underclause17.16 of the Master Circular for Mutual Funds shall be optional for jointly held Mutual Fund folios.”
Adding further “All other provisions related to requirement of nomination as provided in SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023and SEBICircular No. SEBI/HO/MIRSD/POD-1/P/CIR/2023/193 dated December 27, 2023, shall remain unchanged.”
In the same circular, the regulator stated that a working group established by Sebi reviewed mutual fund regulations and recommended steps to facilitate ease of doing business. Several actions were taken.
A public consultation was conducted based on the working group's report, which asked for permission to allow fund houses to choose a single fund manager to supervise international and commodities investments and to make nominations for joint mutual fund accounts optional.
How to add nominee to demat account
Step 1: Click on the URL (http://nsdl.co.in/dpmplus.php)
Step
