The deadline for updating the nomination for your mutual fund (MF) investments, trading, and demat accounts is just ten days away. Investors have time till 30 September to do the same. Earlier the deadline was March 31, 2023.
Nomination deadline for trading, demat accounts
In a circular dated 27 March, the market regulator extended the deadline for existing eligible trading and demat account holders to nominate a beneficiary for their accounts to September 30, 2023.
“Act now to nominate your loved ones in your demat account before the deadline on September 30, 2023. Don’t delay, start the nomination process now and secure the financial future of your loved ones,” the National Securities Depository (NSDL) posted on X (formerly Twitter).
“Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021, read with para 3 (a) of SEBI circular dated February 24, 2022, with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023,” the market regulator mentioned in a circular dated 27 March.
Failing to meet the deadline will result in trading and demat accounts being frozen.
Demat account: For new and existing investors
Investors who are opening new trading and demat accounts must provide a nomination or opt out of nomination through a declaration form. Existing investors who have already provided nomination details are not required to resubmit nomination details
How to add a nominee to the Demat account
-Login to your demat account.
-Go to ‘My nominees’ under the profile segment, which will redirect to the nominee details page.
-Choose ‘add nominee’ or ‘opt-out’.
-Fill out the nominee details and upload an ID proof of the nominee.
-After uploading the documents, enter the nominee share in percentage that the investor would like to assign to the nominee. ‘
-E-sign the document with Aadhaar OTP.
-The details of the nominee will be processed.
How to add a nominee to your MF portfolio
Nomination can also be done while investing in mutual funds, either during the initial application or subsequently by filling out the prescribed nomination form.
“The industry offers multiple channels for investors to complete the process. Online is the more efficient route. MFCentral and RTA websites offer distinct user experiences, each attempting to solve for convenience,” said Anand Dalmia, Co-founder & CBO of Fisdom, a wealth tech platform.
What happens if MF investors fail to add a nominee?
The deadline for all the existing mutual fund folios, including jointly-held ones, has been set as 30 September, 2023, failing which the folios will be frozen for debits.
Why is it important to add nominees to your folios
Keep in mind that your nominee(s) will serve as your representative and are essential to ensuring that, in the tragic case of your untimely passing, your investments are passed to your loved ones. so it’s important to choose a trustworthy person and make a wise decision.
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Updated: 20 Sep 2023, 01:05 PM IST