SEBI defers timeline for implementation of Phase III of Nomination
SEBI had issued a circular on “Revise and Revamp Nomination Facilities in the Indian Securities Market” on January 10, 2025. Pursuant to the representations received from various stakeholders, SEBI had decided to implement the circular in three (3) phases, instead of from March 01, 2025. Accordingly, vide circular dated February 28, 2025, implementation of certain provisions were deferred to Phase II (i.e. June 01, 2025) and Phase III (i.e. September 01, 2025).
The Phase III was related to following requirements as set out in circular dated 10.01.2025
| clause 3.2 | Investors can nominate up to 10 persons in the account / folio |
| clause 3.4 | Upon transmission of joint account / folio, the nominees shall have the option to either continue as joint holders with the other nominees or open separate single account / folio for their respective portion. |
| clause 3.5 | Nominee to act on behalf of incapacitated investors |
| clause 3.6.1 | The broad guidelines to be followed for operation of accounts in case of an incapacitated investor. |
| clause 3.9 | In accounts / folios with multiple nominees, where some portion is transmitted to the nominee(s) and the remaining portion is unclaimed by the other nominee(s) the DP / AMC shall allow the unclaimed portion to continue in the existing account / folio and not permit any other transactions in such accounts / folio, other than transmission to the remaining nominee(s) |
| clause 3.9.1 | The DP shall flag such demat accounts for additional due diligence and furnish periodical report of such accounts to the concerned Depositories |
| clause 3.10 | Regulated entities shall have the following online mechanism for existing and new investors, who want to opt-out of nomination |
The original target for Phase III implementation was set for September 1, 2025 — later extended to December 15, 2025 to give market infrastructure participants more time for system changes
However, SEBI has issued a new circular dated 11th December 2025, deferring the implementation date of Phase III of the Nomination Circular (dated January 10, 2025), as read with its subsequent amendments (from February 28 and July 30, 2025). This means:
- The Phase III implementation scheduled for December 15, 2025 has now been postponed.
- A new implementation date will be notified later.
- All other provisions of the original and amended circulars remain unchanged.
The deferment was done considering operational challenges by depositories, depository participants, and industry bodies requesting more time for necessary system and process upgrade.
- SEBI defers timeline for implementation of Phase III of Nomination
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