The Securities and Exchange Board of India (Sebi) has released a notification stating that retail investors must declare a nominee or opt out of nomination before March 31, in order to continue trading. Mutual fund investors must also comply with the directive for nomination. If they fail to do so, they will be unable to redeem their units from April 1. Fresh or additional purchase and systematic investment plans (SIPs) will, however, continue to get processed. The circular was issued on June 15, 2022.
Sebi had mandated the submission of nomination details or declaration for opting out of nomination for investors opening new demat accounts on or after October 1, 2021. It has already extended the March 31, 2022 deadline by a year.
Appointing a nominee is vital as it protects the family of a person who has passed away from a lot of hassles. “If a nominee has not been appointed, the family has to go through a long and tedious
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