The Securities and Exchnage Board of India (SEBI) on February 02, 2024, issued the Consultation Paper to Revise and Revamp Nomination Facilities in the Indian Securities Market
This aims to aid in the reduction of unclaimed assets as well as smoothen the process for surviving families/beneficiaries/successors of deceased investors.
The following has been stated namely: -
• It states that this consultation paper proposes revisions to nomination facilities for securities (such as shares, bonds, units of REITs/ InvITs / AIFs and other securities) held in dematerialized form in a demat account and for units of mutual fund schemes held in non-materialized form / Statement of Account addressing the objective of providing convenience to investors in the Indian securities market, and institution of uniformity in the facilities and procedures and affording certain choices and flexibilities in nomination facilities.
• It states that Such revised and revamped nomination facilities will operate in the following without affecting the prevalent systems of law governing transmission and succession namely:-
(a) Rule of Survivorship (in case of joint ownership or joint holdings)
(b) When a person has died leaving a Will; and
(c) When a person has died without leaving a Will, i.e. intestate.
• It states that In case of joint holdings and the rule of survivorship being applicable, no documentation related to KYC, indemnities, or undertakings shall be required from the surviving joint holders/owners.
Comments are invited from the public as per the format attached and may be sent to the following, and should reach SEBI by March 08, 2024, through the online form.
Kindly refer to the document to view the format
