Mutual Funds nomination deadline extended from March 31. Know details
For the convenience of mutual funds holders, Securities and Exchange Board of India(SEBI) has extended the deadline for filling the details of the nominee from 31 March to 30 September. The mutual funds holders are required to fill details of nomination to avoid getting their accounts frozen by the next deadline.
“The requirement for nomination/ opting out of nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly, by March 31, 2023, failing which the folios shall be frozen for debits,” stated SEBI in its announcement.
The official circular further mentioned, “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.”
The circular also mentioned asset management companies and RTAs of encouraging their customers of completing the nomination process as soon as possible before the extended deadline.
“AMCs and RTAs shall encourage the unit holder(s) to fulfil the requirement for nomination/ opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holder(s) who are not in compliance with the requirement of nomination. The communication shall provide guidance by which the unit holder(s) can provide nomination or opt out of nomination,” added SEBI.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.