Mutual Fund Nominee Update Last date: As deadline inches closer, here's all you need to know to avoid freezing of MF folios

Mutual Fund Nominee Update Last date: As per a SEBI circular, investors must either update the nomination details or opt out of the nomination.

In the absence of compliance, Mutual Fund folios will be frozen and investors will not be able to redeem their investments. Photo credit: Pixabay

Mutual Fund Nominee Update Last date: Mutual funds have become quite popular these days among investors. The main reason behind mutual funds gaining immense popularity is due to its flexibility. While it is a popular mode of investment, there are certain things that every investor must do to make sure that their invested amount is protected in case of unforeseen circumstances. One such important step is providing details of the nominee.

It is mandatory for all existing individual mutual fund unit holders to nominate or opt out of nomination before September 30, 2003.

Mutual Fund Nominee Update Last date: What is mutual fund nomination?

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Mutual Fund nomination is a process wherein investors appoint a person who will receive the investment in case the investor dies. This process is important as it lets the nominee claim the investment without any legal hassles.

"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," the Securities and Exchange Board of India (Sebi) said in a circular on March 28, 2023.

Mutual Fund Nominee Update Last date: SEBI Regulation

As per a SEBI circular, investors must either update the nomination details or opt out of the nomination. In the absence of compliance, Mutual Fund folios will be frozen and investors will not be able to redeem their investments.

Mutual Fund Nominee Update Last date: How do you make a nomination?

Mutual Fund nominations can be updated both in online and offline mode. Those who have opened an account via offline mode can do so by filling up the nomination form, signing it, and then submitting it to the Registrar and Transfer Agent (RTA) or the mutual fund house.

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Those who opened a mutual fund account online can simply check their mutual fund statement and see if your folios have a nominee in place. They can then update it via a two-factor authentication login.

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