Sebi extends deadline to add nominees in mutual funds, demat accounts

The deadline to nominate or opt out of it by submitting a declaration form was December 31. The move is aimed at helping investors to secure their assets and pass them on to their legal heirs

Markets regulator Sebi on Wednesday extended the deadline to June 30 next year for demat and mutual fund account holders to provide a nomination.

Earlier, the deadline to nominate a beneficiary or opt out of it by submitting a declaration form was December 31, 2023.

The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.

"Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of 'choice of nomination' for demat accounts and mutual fund folios to June 30, 2024," the Securities and Exchange Board of India (Sebi) said in a circular.

Further, Sebi asked asset management companies (AMCs), depository participants and Registrar and Transfer Agents (RTAs) to encourage the demat account holders and mutual fund unit holders to fulfil the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.

The communication should provide guidance to provide nomination or opt out of nomination.