SEBI (Securities and Exchange Board of India) issued a notification last year that all mutual funds had to have a nominee mentioned by March 31st latest. Either the investor must specify a nominee or have the option removed. Failure to do so means their portfolios will be frozen. SEBI made this announcement last year in a circular.
If you have invested in mutual funds through Money Assist, a mutual fund agent in Kolkata, we appeal to you to update the information regarding your nominee at the latest.
In case a mutual fund investor fails to update his or her nominee by 31st March 2023, they will be forbidden from redeeming units or engaging in operations like Systematic Investment Plan or Systematic Transfer Plan from 1st April 2023 onwards.
Reach out to your mutual fund agent in Kolkata and get this task done quickly to continue with your SIP payments.
SEBI issued this circular on 15 June 2022. The circular said that investors subscribing to the mutual funds on or after 1st Aug 2022 would need to provide a nominee or opt out of providing a nominee.
SEBI has reached out to all the AMCs and told them to ensure that the task is completed by 31st March 2023. Failure to comply with this rule will mean that the units of the mutual fund will be frozen.
The nomination facility is used to nominate one or more individuals who will inherit their units in the event of their demise.
At the time of subscription to a mutual fund, it is necessary to fill in your nominee. This was only hinted at by the various online portals and mutual fund agents in Kolkata. However, it was not mandated, as it will be now.
In case you do not wish to nominate anybody, you need to explicitly mention that in the form.
Once a nominee has been decided upon, it will be validated by two-factor authentication.
You can fill out the nomination at the time of purchase of mutual fund units or at a later date.
If you will up the nomination forms later, you can submit it at the designated mutual fund service centres or the office of its registrars.
Up to 3 people can be nominated by an investor. Moreover, in the nominee, you will need to clearly specify the units of the mutual fund for each nominee. If the share is not specified the AMC has the right to divide the units equally among the mentioned persons.
AMFI also mentioned, that in case there is no nominee details found, the legal heirs will be given the units of the mutual fund. So get nominee details filed today from mutual fund agent in Kolkata, Money Assist!
