Good news for MF investors and demat account holders: The Securities and Exchange Board of India (SEBI) has extended the deadline for adding nominee details to your demat accounts and mutual fund folios. Earlier, the SEBI had set a deadline for December 31, 2023.
Failing to add nominee details or not “opting out” of the nomination process would have resulted in investors’ mutual fund and demat accounts being frozen.However, SEBI has now extended the deadline to June 30, 2024, giving investors an additional six months’ time to complete the details.
“Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024,” the SEBI circular read.
The SEBI circular went on to add, “Depository Participants, AMCs and RTAs shall encourage the demat account holders/ mutual fund unit holders to fulfill the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such demat account holders/ mutual fund unit holders who are not in compliance with the requirement of nomination. The communication shall provide guidance to provide nomination or opting out of nomination.”
Here are the steps to add a nominee to your mutual fund or demat account:
Failing to add nominee details or not “opting out” of the nomination process would have resulted in investors’ mutual fund and demat accounts being frozen.However, SEBI has now extended the deadline to June 30, 2024, giving investors an additional six months’ time to complete the details.
“Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024,” the SEBI circular read.
The SEBI circular went on to add, “Depository Participants, AMCs and RTAs shall encourage the demat account holders/ mutual fund unit holders to fulfill the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such demat account holders/ mutual fund unit holders who are not in compliance with the requirement of nomination. The communication shall provide guidance to provide nomination or opting out of nomination.”
Here are the steps to add a nominee to your mutual fund or demat account:
- Go to the URL – http://nsdl.co.in/dpmplus.php
- Subscribe for the facility by providing DP ID, Client ID, PAN, and OTP
- After successful authentication, choose to opt-in or opt-out of nomination
- Opt for nomination by selecting ‘I wish to Nominate,’ enter nominee details, and click ‘Save & Next’
- Verify the nomination details through OTP authentication
- Complete Aadhaar e-Sign by submitting an OTP at the eSign Service Provider’s page
- Submit the OTP to finalize the process and receive a final confirmation on the screen.