SEBI EXTENDS DEADLINE FOR MUTUAL FUND UNIT HOLDER NOMINATIONS

Published on Sep 28, 2023 12:33

The Securities and Exchange Board of India (SEBI) has announced an extension of the deadline for nomination/opting out of nomination for individual unit holders of mutual funds. The new deadline for fulfilling the nomination requirement is now 1 January 2024, instead of the previously set date of 30 September 2023.

To ensure compliance with the nomination requirement, Asset Management Companies (AMCs) and Registrar and Transfer Agents (RTAs) will be actively reaching out to unit holders. Regular communications will be sent via email and SMS to those who have not yet fulfilled the nomination process. These communications will provide guidance and instructions on how unit holders can provide nominations or opt out of nominations as per their preference.

SEBI introduced a rule on 15 June 2022, requiring mutual fund holders to submit their nomination details or opt out of nomination for their investments. This rule was set to take effect from 1 August 2022. However, the deadline for compliance has been extended multiple times since then. The objective is to safeguard the interests of investors in securities and promote the development and regulation of the securities market.