Mumbai, December 27, 2023: In a sigh of relief for individual investors, the Securities and Exchange Board of India (SEBI) has extended the deadline for completing the nomination process in mutual fund and demat accounts. The previous deadline of December 31, 2023, has been pushed back to June 30, 2024. This gives investors additional time to either add a nominee or formally opt out of nomination for their financial holdings.
The nomination process ensures a smooth transfer of your investments in the event of an unfortunate incident. By nominating a trusted individual, you safeguard your mutual fund units and demat securities, ensuring they reach your desired beneficiary without going through the complexities of legal procedures.
What Now for Investors?
- Investors who haven’t yet submitted their nomination details or opted out have until June 30, 2024, to do so.
- This applies to both existing holdings and new investments made in mutual funds and demat accounts.
- The nomination process can be completed online through your respective platforms or offline by submitting the required forms.
- Investors who have already submitted their nomination details need not take any further action.
What Happens if You Miss the Deadline?
Failure to comply with the nomination mandate could result in limitations on accessing your holdings. While accounts won’t be frozen entirely, SEBI might restrict withdrawals or debits from accounts without a nominee. This could cause complications and delays in accessing your investments when needed.
Importance of Nominating
Choosing a nominee safeguards your investments and ensures they reach your intended beneficiary without unnecessary legal hurdles. It provides peace of mind knowing your financial assets are protected and will be used as per your wishes.
Taking Action
With the extended deadline, investors have ample time to prioritize this essential task. Don’t delay this crucial step; access your investment platforms or contact your demat account provider/mutual fund AMC to complete the nomination process before June 30, 2024.
By Proactively taking this step, you can ensure a smooth and hassle-free transfer of your investments for your loved ones in the future.
