The succinct headline for the information is: “SEBI Extends Deadline for Adding Nominee to Mutual Funds

Key Takeaways:

Here are the key takeaways from the provided information:

1. The deadline for adding a nominee to mutual funds has been extended by SEBI.
2. The freezing of folios will become effective on January 1, 2024, instead of the previous deadline of September 30, 2023.
3. Mutual fund unit holders can add a maximum of three nominees, and the percentage of allocation or share should sum up to 100% without any decimals.
4. Nomination made by a unit holder will be applicable for units held in all the schemes under the respective folio, account.
5. Non-Resident Indians can be nominated subject to applicable exchange control regulations.
6. Nomination is not allowed in a folio of a minor unitholder, but it is possible for a minor to be nominated with the guardian’s details provided.

The Securities and Exchange Board of India (SEBI) has extended the deadline for existing individual unit holders (either singly or jointly) owning mutual fund units to add or opt-out of a nominee. The freezing of folios will become effective on January 1, 2024, instead of the previous deadline of September 30, 2023. This means that transactions such as Redemptions, SWP, Switch, STP will be frozen in the corresponding folios if the nomination is not registered within the specified timeframes.

Here are the key points regarding the nomination deadline for mutual fund unit holders:

Deadline Extension:

The deadline for existing demat account holders to provide a choice of nomination has been extended by SEBI to December 31, 2023, from the previous deadline of September 30, 2023.

Consequences of Missing the Deadline:

If the required information is not registered within the specified timeframes, transactions such as Redemptions, SWP, Switch, STP will be frozen in the corresponding folios beginning October 1, 2023.

Number of Nominees:

Mutual fund unit holders can add a maximum of three nominees. The percentage of allocation or share should be expressed in whole numbers only, without any decimals, and should sum up to 100%.

Important Points to Note:

• Nomination made by a unit holder will be applicable for units held in all the schemes under the respective folio, account.
• A Non-Resident Indian can be nominated subject to the applicable exchange control regulations.
• The Nominee shall not be a trust (other than a religious or charitable trust), society, body corporate, partnership firm, Karta of Hindu Undivided Family, or a Power of Attorney holder.
• Nomination is not allowed in a folio of a Minor unitholder, but it is possible for a minor to be nominated, in which case the name and address of the minor nominee’s Guardian must be provided.

Mutual Fund Units Held in Demat Form:

Nomination details provided by the Unitholder to the depository will be applicable to the mutual fund Units held in demat mode. Such nomination, including any variation, cancellation, or substitution of Nominee(s), shall be governed by the rules and bye-laws of the Depository.

FAQ

Q1: Has the last date to add a nominee to mutual funds been extended?

A1: Yes, the last date to add a nominee to mutual funds has been extended by SEBI. The freezing of folios will become effective on January 1, 2024, instead of the previous deadline of September 30, 2023.