Declare nominee by March 31 or risk having your demat, MF folio frozen

Appointing a nominee is vital as it protects the family of a person who has passed away from a lot of hassles

Karthik Jerome
Industry players say the number of demat accounts will continue to grow. However, the pace of addition may moderate.

Many investors are facing difficulties in completing the nomination online as they aren't able to do the e-sign process

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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First Published: Mar 27 2023 | 8:50 PM IST

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