All existing individual mutual fund unit holders have to nominate or opt out of nomination before September 30, 2023 failing which their folios will be frozen for debits.
The last date for mutual funds investors to specify nominee details is September 30, 2023.
Through a circular on March 28, 2023, the Securities and Exchange Board of India (Sebi) said, “Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead of March 31, 2023.”
Option to opt- out nomination
Those who don’t want to submit nominations can submit an opt-out declaration to prevent the units in mutual funds from being frozen. Investors who wish to opt in or out of nomination but have not yet submitted their nomination information may do so by visiting the trading platforms of stock brokers or depository participants who offer this service.
In case of joint account
If more than one person holds joint ownership of the Units, all joint unit holders must get together and name a person to whom the rights to the Units would pass in the event that all joint unit holders passed away.
According to the Association of Mutual Fund India (Amfi India) website, “CAMs & KFintech have enabled the facility to update nomination details online for all individual investors with non-demat folios”
What is nomination in mutual funds?
According to the Association of Mutual Funds in India (AMFII), “Nomination is a facility that enables an individual to nominate a person, who can claim the Units held by the unitholder or the redemption proceeds thereof in the event of death the unitholder.”
How DSP customers can update nomination details
Step 1: Log in to your account on DSP website
Step 2: Go to ‘Folios’ and under Holder details, use the “+Add nominee details” option to update nominee (s)
Also, one can visit the branch and submit the form signed by all unit holders.
How CAMS customers can update nominee
Step 1: Click on the link to register Nominee(s) or opt-out declaration http://bit.ly/3Q6d0Tl
Step 2: Select ‘Add Nominee’. You can also edit the nominee details such as the addition/modification in the existing folio’s where Nominee’s already registered, or No Nomination opted.
Alternatively, investors may submit the physical forms for Nomination / opt-out at the designated Investor Service Centers of CAMs / KFintech / AMCs before the deadline date.
Source By: economictimes
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