Sebi’s revamped nominee rules aim to simplify succession but raise new challenge
Subscribe to enjoy similar stories. Picture this: A family’s financial stability teeters on the edge when the primary earner is hospitalized after a sudden accident. With only ₹2 lakh liquid in the bank and the rest tied up in mutual funds and stocks, the family is unable to access savings.
The incapacitated breadwinner cannot operate his accounts, leaving the family stranded in their time of need. To address such scenarios, the Securities and Exchange Board of India (Sebi) has rolled out revamped rules that allow nominees to manage the accounts of physically incapacitated investors without requiring a power of attorney (POA). Announced on 10 January, these rules aim to provide families with a financial safety net.
However, experts warn of limitations and potential challenges. Sebi’s new guidelines allow single-holding investors to authorize one nominee (excluding minors) to operate their accounts if they are physically incapacitated but still mentally capable of contracting. Redemption proceeds are credited directly to the investor’s linked bank account.
Read this | A basic will may not always protect your family. Here's how a conditional will can help. However, nominees cannot update key details such as bank accounts or contact information. Additionally, the provisions exclude investors in critical conditions, such as comas or on ventilators.
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