The Securities and Exchange Board of India, (SEBI) on April 30, 2024, issued a circular for Nomination for Mutual Fund Unit Holders – exemption for jointly held folios.
The circulars mentioned pertain to the nomination/opting out of nomination for existing individual unit holders of Mutual Fund units, with a deadline of June 30, 2024, after which folios will be frozen for debits if not complied with.
To streamline compliance and reduce costs, a working group reviewed the Mutual Funds regulatory framework and conducted a public consultation. Consequently, it was decided that the nomination requirement in the Master Circular for Mutual Funds would be optional for jointly held Mutual Fund folios.
While this change is implemented, all other nomination-related provisions from the specified circulars remain unchanged. The issuance of this circular is in line with SEBI's powers under the Securities and Exchange Board of India Act, 1992, along with relevant regulations to safeguard investor interests and regulate the securities market.
[Notification No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/29]
