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Deadline for nomination for MF, demat accounts extended till Sept 30

Stock brokers, AMCs directed to send regular communications to investors yet to comply

File photo: PTI

File photo: PTI

Abhishek Kumar Mumbai

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The Securities and Exchange Board of India (Sebi) has extended the deadline for updating ‘choice of nomination’ by existing mutual fund (MF) investors to September 30 from March 31.

A day earlier, the regulator had announced the six month extension for trading and demat accounts as well.

A fairly large number of MF investors are yet to comply with the nomination norms. According to RTAs, almost 10 per cent of the MF folios were not in compliance with the new norms at the end of last week.

The markets regulator said that the decisions have been taken based on the representations received from the stakeholders and the assessment of accounts in which nomination has not been updated.

With the extension, investors now have six more months to comply. The accounts with no update on nomination will be frozen for trading and debits after September 30. Investors also have the option to opt-out of the nomination.  

Stock brokers, asset management companies and registrar and transfer agents have been asked to send a communication to their clients and investors to update the choice of nomination on a fortnightly basis through emails and messages.

Further, the stock exchanges and depositories have been asked to submit a report on the same on a monthly basis. The first such report has to be submitted by May 7 and within 7 days for the end of each month.

Earlier on Monday, National Securities Depository Limited warned stock brokers who were opting out from nomination on behalf of their clients without their consent. It said that such acts by market participants were being viewed seriously.

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First Published: Mar 28 2023 | 10:25 PM IST

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