Demat accounts & mutual fund portfolios won't be frozen for not giving nomination details : SEBI
Providing nomination is still mandatory for new investors, except for jointly held Demat Accounts and Mutual Fund portfolios.
Demat accounts and mutual fund portfolios won't be frozen for not submitting nomination, SEBI announced today.
The decision was taken based on representations received from the market participants, for ease of compliance and investor convenience, the markets regulator said in a circular.
Also Read | Zerodha's Nithin Kamath praises Sebi: 'Brokers' future role may reduce to just…'
Security holders can also receive dividend, interest or redemption payment as well as to lodge grievance or avail any service request, even if 'choice of nomination' is not submitted, SEBI wrote, adding that payments including dividend, interest or redemption payments which are currently withheld for not having nomination details shall be processed.
However, the choice of nomination is still mandatory for new investors, except for jointly held Demat Accounts and Mutual Fund portfolios. SEBI said that depositories and asset management companies (AMCs) must communicate with customers through mail or SMS on a fortnightly basis to get nomination details.
SEBI had extended the deadline until June 30, 2024 for mutual fund investors to complete their nominations, last December.
Also Read | SEBI looks to allow Mutual Funds to sell CDS schemes; Reform CDS buying rules