Timeline to add MF nominees ends today

All individual demat account holders and mutual fund (MF) investors have time till September 30, to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their demat accounts and folios will be frozen, and they will not be able to redeem their investments.

This mandate applies to both new as well as existing investors, according to the Securities and Exchange Board of India (Sebi). The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.

“This will ensure smooth and hassle-free transfer of securities to the legal heirs of the investors in case of any unfortunate event,” Tejas Khoday, co-founder and CEO at FYERS, said. Under Sebi’s rule, new investors must either nominate their securities or formally opt out of nomination through a declaration form when opening trading and demat accounts. For existing investors, including jointly-held mutual fund folios, failing to meet this deadline will result in the freezing of folios for debits. Further, investors’ demat accounts or mutual funds folios will be frozen and inaccessible until they nominate or declare opt-out.