The deadline to nominate a beneficiary or opt out of it was to be submitted by December 31, 2023 previously.
New Delhi: Markets regulator Sebi has announced that it has extended the deadline to add nominations in demat and mutual fund till June 30 next year from the previous deadline of December 31.
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The deadline to nominate a beneficiary or opt out of it was to be submitted by December 31, 2023 previously.
“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,” a Sebi circular said.
The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.
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Sebi has also asked depository participants, asset management companies (AMCs), 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, Sebi added.
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Sebi has also advised Stock Exchanges, Depositories, AMCs, RTAs and Listed Companies to take necessary steps to implement the provisions of this circular, including making necessary amendment to the relevant bye-laws / business rules / regulations / operational instructions, as the case may be and bring the provisions of this circular to the notice of their respective constituents and also disseminate this circular on their websites
Sebi has asked that it be communicated about the status of the implementation of the provisions of this circular and monitor the compliance of this circular.
