Nomination for Mutual Fund Unit Holders – Extension of timelines
Summary
SEBI extends the deadline for mutual fund investors to submit nomination details from August 1, 2022, to October 1, 2022. Asset Management Companies must provide unit holders with options to submit nomination or opt-out forms via physical or online methods. Online submissions require validation through e-Sign or two-factor authentication including a One-Time Password.
Text
Investors subscribing to mutual fund units on or after October 1, 2022, shall have the choice of submitting nomination details/declaration for opting out of nomination.
AMC shall provide an option to the unit holder(s) to submit either the nomination form or the declaration form for opting out of nomination in physical or online as per the choice of the unit holder(s).
In case of physical option, the forms shall carry the wet signature of all the unit holder(s).
In case of online option, instead of wet signature(s) of all the unit holder(s), AMCs shall validate the forms using e-Sign facility recognized under Information Technology Act, 2000.
In case of online option, AMCs shall validate the forms through two factor authentication (2FA) in which one of the factor shall be a One-Time Password sent to the unit holder at his/her email/phone number registered with the AMC.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996.
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.