AMFI eases mutual fund transmission process for nominees, legal heirs

The revised SOP allows AMCs greater flexibility in handling address, name and signature mismatches to ease transmission of mutual fund units after an investor's death

The Association of Mutual Funds in India (AMFI) has further simplified the process for the transmission of mutual fund units following an investor's death by introducing measures aimed at reducing documentation-related hurdles for nominees and legal heirs.

 

Under the revised standard operating procedure (SOP), asset management companies (AMCs) can rely on the latest available address of the deceased unit holder, supported by relevant documents, if the address in the records does not match. AMFI has also introduced a harmonised framework to deal with minor and major mismatches in the name or signature of the deceased investor, aligning the process with the provisions applicable to registrars and transfer agents (RTAs) under Sebi's February 2026 master circular.

 

The changes follow concerns over operational difficulties faced by families while claiming mutual fund investments because of minor documentation discrepancies. AMFI said it will conduct training programmes for AMCs to ensure uniform implementation of the updated procedures.