Nomination for Mutual Fund Unit Holders – Extension of timelines
Summary
SEBI extends the deadline for mutual fund unit holders to complete nomination or opting out procedures from September 30, 2023, to January 1, 2024. Asset Management Companies and Registrar to an Issue and Share Transfer Agents are mandated to send fortnightly communications to non-compliant unit holders. All other provisions of the referenced earlier circulars remain unchanged.
Text
SEBI prescribed 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 September 30, 2023, failing which the folios shall be frozen for debits.
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 January 01, 2024 instead of September 30, 2023.
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.
All other provisions of Circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82 dated June 15, 2022 and SEBI/HO/IMD/IMD-I DOF1/P/CIR/2022/105 dated July 29, 2022 shall remain unchanged.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Nomination for Mutual Fund Unit Holders – Extension of timelines. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.