Do you invest in stocks, and mutual funds? If you invest in stocks, you must have a Demat account. Well, this piece of information is for all MF and demat account holders. The Securities and Exchange Board of India (SEBI) has made it mandatory to add a nominee or opt out. December 31 is the last day for adding mutual fund, and demat account nominees! You have only six days left to complete these important tasks. The mandate of nominating a beneficiary applies to new as well as existing investors, Sebi had earlier said.
What happens if you fail to add nominee in your MF, demat accounts by the given deadline
The market regulator said that failing to comply with the deadline will result in frozen accounts and folios.
“Nеglеcting to appoint a nominее for your Mutual Fund and Dеmat accounts is еquivalеnt to swimming unknown sеas without a compass in today’s volatilе financial markеts. Failurе to namе a candidatе incrеasеs ambiguity, pеrhaps lеaving your financial lеgacy in limbo. Appointing a nominее in advancе is not just a wisе dеcision; it is also a stratеgic movе to еnsurе a smooth transfеr of assеts, protеcting your financial intеrеsts for futurе gеnеrations,” said Agam Gupta, Executive Director, Share India FinCap
Here’s how to add a nominee to your demat account
-Go to the NSDL’s portal, nsdl.co.in
-On the homepage, click on ‘Nominate Online’ option
-A new page will open and ask for your DP ID, client ID, PAN, and OTP
-After entering the details, you will see two options: ‘I wish to Nominate’ and ‘I do not wish to nominate’
-When you opt to add a nominee, a new page will open seeking the nominees’ details.
-e-sign using Aadhaar. OTP on the mobile number registered with UIDAI.
Here’s how to add a nominee for your MF folios
-Nomination for mutual funds can be done at the time of starting investment or even later.
-To update mutual fund nominations online, one needs to visit the Mutual Fund house’s official web portal or NSDL website.
-A maximum of 3 people can be added as a nominee in a mutual fund.
-At the time of nomination, you can also tell how much share is to be given to each nominee.
-The nomination form must be signed by all the unit holders.
-If you have invested in a fund through a demat account and the units are held with the depository, then the nomination details submitted by the unit holder with the depository will apply to the mutual fund holding also.
Source By: livemint
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