The Securities and Exchange Board of India (SEBI) on February 28, 2025, issued the notification regarding the Amendments and clarifications to Circular on Revise and Revamp Nomination Facilities in the Indian Securities Market.
The following has been stated namely: -
• Clarification has been issued regarding the circular no. SEBI/HO/OIAE/OIAE_IAD-3/P/ON/2025/01650 dated January 10, 2025, regarding the revising the norms for nomination for demat accounts and mutual fund (MF) folios in the Indian securities market.
• Clause 2.1.1: In case of joint accounts/holdings, upon demise of one or more joint holder(s), the regulated entity shall transmit the assets held to the surviving joint holder(s) vide name deletion of the deceased holder(s). However, the regulated entity shall provide the option to surviving joint holder(s) to transmit the assets held, into another existing or new account/folio.
• Clause 2.8: An investor having single holding/account/folio can opt-out of nomination, either online or through physical/offline mode. The online mechanism for opting-out of nomination is outlined at clause 3.10 of the circular.
• Clause 3.5: An investor having single holding/account/folio can, at any point of time, empower any one of the nominees (excluding minor nominee) to operate the investor’s account/folio, in the event where the investor is physically incapacitated, but still has the capacity to contract. Further, the investor can change such nominee any number of times, without any restriction.
• Clause 3.9: Credit transactions (including through corporate actions) shall be permitted in such accounts / folios.
• Amendments have been stated in the notification.
• The circular shall be implemented in phases namely: -
o Phase – II – June 01, 2025
o Phase – III – September 01, 2025
This circular shall come into force with effect from March 01, 2025.
[Notification No. SEBI/HO/OIAE/OIAE_IAD-3/P/ON/2025/0027]
