Mutual Fund, SIP Nominee Update: ALERT! Last Date to End SOON! Give Nomination Details to Avoid Freezing of MF Portfolio

Mutual Fund, SIP Nominee Update Last Date: All the existing individual mutual fund unit holders mandatorily have to nominate or opt out of nomination before September 30, 2023. Earlier, the last date for mutual fund investors to specify nominee details was March 31, 2023. However later, the date was extended till September 30, 2023.
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Updated Sep 19, 2023 | 03:58 PM IST

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All the existing individual mutual fund unit holders mandatorily have to nominate or opt out of nomination before September 30, 2023. (Pic- istock)

Mutual Fund Nominee Update Last Date: All the existing individual mutual fund unit holders mandatorily have to nominate or opt out of nomination before September 30, 2023. Failing which MF folios will be frozen for debits.
Mutual funds are a type of investment where the investors pool their money and invest in stocks, bonds, and other securities. Mutual funds have become very popular among investor these days due to their flexibility.
In mutual funds, the nomination is a facility that enables an individual unitholder to nominate a person, who can claim the Units held by the unitholder or the redemption proceeds thereof in the event of the death of the unitholder, according to the Association of Mutual Funds in India (AMFII).

Mutual Fund, SIP Nominee Update: Last Date Nears!

The last date for mutual fund investors to specify nominee details is September 30, 2023.
The Securities and Exchange Board of India (Sebi), in a circular dated March 28, 2023, said, “Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022, with regard to freezing of folios, shall come into force with effect from September 30, 2023, instead of March 31, 2023."
Earlier, the last date for mutual fund investors to specify nominee details was March 31, 2023. However later, the date was extended till September 30, 2023.

Mutual Fund Nomination Last Date: Option to opt-out nomination

Those mutual fund investors who have already submitted their nomination details, do not need to resubmit their nomination details. However, those who don't want to submit their nomination information might make an opt-out declaration to prevent the units in mutual funds from being frozen.
Mutual fund investors who wish to opt in or out of nomination but have not yet submitted their nomination details may do so by visiting the concerned trading platforms of stock brokers or depository participants who offer this service.

Mutual Fund Nominee Update Last Date: What happens if you have joint account?

If the units are held jointly by more than one person, all joint unit holders must get together and mutually nominate a person to whom all rights in the units would pass if all joint unit holders died.
“CAMs & KFintech have enabled the facility to update nomination details online for all individual investors with non-demat folios,” as per AMFII.

Check how DSP customers can update nomination details – Step-by-step guide

Step 1: Log in to your account on DSP website
Step 2: Go to ‘Folios’ and under Holder details, use the “+Add nominee details” option to update nominee (s)
Note: The investor can also visit the branch and submit the form signed by all unit holders.

Check how CAMS customers can update nominees – Step-by-step guide

Step 1: Click on CAMS direct link - http://bit.ly/3Q6d0Tl to register Nominee(s) or opt-out declaration
Step 2: Enter ‘Investor PAN’ details and click on ‘Next’
Step 3: Select 'Add Nominee'. You can also edit the nominee details such as the addition/modification in the existing folios where Nominee's already registered, or No Nomination opted.
Note: Investors may also submit the physical forms for Nomination/opt-out at the designated Investor Service Centers of CAMs / KFintech / AMCs before last date.
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