SEBI

Unit Holders of Mutual fund to provide nomination or opt out to avoid freezing folios

Unit Holders of Mutual fund to provide nomination or opt out before 31.03.2023 to avoid freezing their folios. SEBI issued guidelines for Nomination for Mutual Fund Unit Holders

SEBI has issued the following guidelines for nomination for eligible Mutual Fund Unit Holders:

Nomination for eligible Mutual Fund Unit Holders

Investors subscribing to mutual fund units on or after August 1, 2022, shall have the choice of:

(a) Providing nomination in the format specified in fourth schedule of SEBI (Mutual Funds) Regulations, 1996 (or)

(b) Opting out of nomination through a signed Declaration form as provided in Annexure – A to this circular.

It has been provided that Asset Management Companies (AMC) shall provide an option to the unit holder(s) to submit either the nomination form or the declaration form for opting out of nomination in physical or online as per the choice of the unit holder(s).

In case of physical option, the forms shall carry the wet signature of all the unit holder(s) and in case of online option, the forms shall be using e-Sign facility recognized under Information Technology Act, 2000, instead of wet signature(s) of all the unit holder(s).

All AMCs shall ensure adequate systems for providing the e-Sign facility and take all necessary steps to maintain confidentiality and safety of client records. 

A deadline of 31st March 2023 has been set for nomination / opting out of nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly failing which the folios shall be frozen for debits.

View Declaration Form for opting out of Nomination and SEBI Circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82 dated 15th June 2022 Click Here >>

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