Nomination is an important aspect while you plan for any of your financial investments.
This time market regulator SEBI has been emphasising the same for the mutual fund investors. SEBI has come up with new regulation for mutual fund customers to comply and put in timeline for the same.
SEBI in its new directive has written to the mutual fund houses (AMCs) asking them to collect nomination from their customers. Those customers who do not wish to nominate, they have to provide exclusive written consent that they want to opt out of nomination. This is applicable for all the existing customers/investors who have not provided nomination in their mutual fund portfolio. This whole process has to be completed by 31st March 2023 as per the regulator.
SEBI has also made these two options mandatory for new customers from 1st August 2022, that means new customers also have to provide nominee details or provide consent to opt out from nomination.
In case MF customers fail to comply with this guideline (that means neither they provide nominee details nor give written consent to opt out of nomination), then from 1st April 2023 their withdrawal requests will not be processed by the AMCs unless they comply this guideline.
The nominations can be submitted physically or electronically via online.
Banking regulator RBI has already implemented such nomination process in banking investments and with SEBI pushing the industry to follow the new process will move in favour of the investors who often ignore nomination.
You can check all your mutual fund portfolio today and nominate in case you have missed it out before.