Sebi extends deadline to add nominees for mutual fund account holders to June 30, 2024

Markets regulator Securities and Exchange Board of India (Sebi) on Wednesday extended the deadline for mutual fund account holders till June 30, 2024 to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their folios will be frozen.

Earlier, the deadline for existing mutual fund holders to provide a choice of nomination was on or before December 31, 2023.

The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.

"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," said Sebi in a statement.

Sebi asked asset management companies (AMCs) and RTAs to encourage the unit holder to fulfill the requirement for nomination/ opting out of the nomination by sending a communication on a fortnightly basis by way of emails and SMS to all such unit holders who is not in compliance with the requirement of nomination.

The submission of 'choice of nomination' for trading accounts has been made voluntary by Sebi as a move towards ease of doing business.