Important Update for Mutual Fund Unitholders
Dear Crypto Reader, are you a mutual fund unitholder? It’s crucial for you to know about the recent update regarding the nomination process for your accounts. The Securities and Exchange Board of India (Sebi) has introduced a new regulation regarding the nomination for jointly held mutual fund accounts. Let’s dive into the details to ensure you are well informed about this important change.
Optional for Jointly Held Folios
- Mutual fund accounts held jointly are not subject to mandatory opt-in or opt-out for nomination.
- Sebi has announced that the nomination for jointly held mutual fund accounts is now optional as per a circular dated April 30, 2024.
- This means that the requirement of nomination specified under clause 17.16 of the Master Circular for Mutual Funds is now optional for jointly held folios.
Consequences of Not Nominating
- Unitholders must submit nomination information and opt out if necessary using a prescribed declaration form.
- If you fail to nominate or opt out by June 30, 2024, your folio or demat account will be blocked for transactions.
- This restriction includes transactions like Redemptions, SWP, Switch, and STP from July 1, 2024 onwards if the required details are not registered within the specified timeline.
How to Add a Nominee to Your Demat Account
- Step 1: Visit the URL provided for adding a nominee to your demat account.
- Step 2: Subscribe to the facility and enter the required DP ID, Client ID, PAN, and OTP for authentication.
- Step 3: Choose the nomination option, either opt-in or opt-out, based on your preference.
- Step 4: Fill in the details of the nominee(s) and save the information.
- Step 5: Verify the nomination details through OTP authentication.
- Step 6: Complete the Aadhaar e-Sign process for final authentication.
- Step 7: Confirm the nomination by submitting the OTP for the final process.
Nomination in CAMS Opt-in / Opt-out – Online Mode
You can also declare nominee(s) or opt-out of nomination for Mutual Fund folios through an online process that requires OTP-based authentication. This feature is specifically designed for Mutual Fund Holdings and does not apply to units held in Demat mode. In case you hold Mutual Fund units in Demat mode, the nominee registered in your Demat account will be considered. Don’t forget to check with your Depository Participant for further details on nominee registration in the Demat account, or to register a new nominee.
Hot Take: Stay Informed and Take Action!
Now that you are aware of the optional nomination process for jointly held mutual fund accounts, it’s important to take action before the deadline. Ensure you submit the necessary nomination information and make the choice to opt in or opt out based on your preferences. Stay informed, stay proactive, and secure your investments by staying up to date with the latest regulatory changes.
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