The securities and Exchange Board of India (SEBI) has asked all the asset management companies (AMCs) to set March 31, 2023, as the deadline for mutual fund investors for stating nomination or opting out of it for all its unitholders. “All the AMCs are advised to set the deadline as March 31, 2023, for nomination/opting out of a nomination for all the existing individual unit holder(s) holding mutual fund units holder solely or jointly as mentioned at para 1 above, failing which the folios shall be frozen for debits,” SEBI circular read.
New mutual fund investors will have to opt for one of these two options from August 2022, the regulator said. “Investors subscribing to mutual fund units on or after August 1, 2022, will have the choice of: a. Providing nomination in the format specified in the fourth schedule of SEBI (mutual funds) Regulations, 1996 (or) b. Opting out of nomination through a signed declaration form,” SEBI added.
