The Securities and Exchange Board of India (SEBI) on January 10, 2025, issued a circular on Revise and Revamp Nomination Facilities in the Indian Securities Market.
The circular was issued to revise and revamp the norms for nomination for Demat accounts and mutual fund (MF) folios and to prevent the generation of unclaimed assets in the Indian securities market, SEBI came out with a consultation paper in February 2024, seeking comments from the public on various aspects of nomination. According to the approval of the Board for amending the respective regulations, the existing nomination facilities in the Indian securities market, to the extent of aforesaid, are being revised.
This circular covers various aspects of nomination, grouped under two sections – i.e. Section A and B, to be complied by the entities addressed in this circular, hereinafter collectively referred to as Regulated entities, as follows:
• Section A: Reiteration of existing norms to ensure a uniform approach across the Securities Market.
• Section B: Revamped Norms
Regulated entities shall use the Nomination Form as per the format provided in Annexure - A of this circular. This form shall replace the earlier form provided in Circular Ref. No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024.
Regulated entities shall implement/upgrade their systems for providing the above facility to the investors, including the nomination form in Annexure A.
The AMFI and Depositories shall furnish to SEBI;
• The status of readiness of all their constituents to implement this circular, by February 20, 2025.
• Confirmation that the formats of the ‘nomination form’ and the ‘Opt-out’ form of each of their respective constituents, both in physical and digital mode, as the case may be, are as par with the respective formats provided by SEBI14, by March 15, 2025.
• Status of implementation of the provisions of this circular by their constituents by May 01, 2025 and thereafter, as may be specified.
This circular shall come into effect from March 01, 2025.
[Circular No. SEBI/HO/OIAE/OIAE_IAD-3/P/ON/2025/01650]
