The Securities and Exchange Board of India (Sebi) has announced yet another extension of the deadline for mutual fund and demat account holders to add the name of the beneficiary or beneficiaries, or opt out of it. The new deadline has been set for June 30, 2024, extending the previous deadline of December 31, 2023.
This extension comes after Sebi had initially extended the deadline from September 30 to December 31, 2023, to provide mutual fund holders with more time to complete the nomination process. Sebi emphasized that investors must either select a nominee or nominees or explicitly choose to opt out of the nomination by submitting a declaration before the specified deadline.
In a circular, Sebi stated, “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.”
Additionally, Sebi has directed asset management companies (AMCs), depository participants, and Registrar and Transfer Agents (RTAs) to actively encourage demat account holders and mutual fund unit holders to fulfill the nomination requirement or opt out of it. They are required to communicate with such unit holders on a fortnightly basis through emails and SMS to ensure compliance with the nomination process.
This move by Sebi aims to facilitate a smoother and more efficient process for investors to manage their mutual fund and demat account holdings. The extended deadline provides investors with additional time to make informed decisions regarding the nomination of beneficiaries for their investments.