Synopsis :- SEBI, vide its Circular dated 29 th July, 2022 extended timelines from 01 st August, 2022 to 01 st October, 2022 for submission of nomination details/declaration for opting out of nomination for investors subscribing to mutual fund units which resulted in modification of Para 1 of SEBI Circular dated 1 st June, 2022.
Further, SEBI also modified Para 2 of the circular by providing an option to the unit holder(s) to submit either the nomination form or the declaration form for opting out of nomination in physical or online as per the choice of the unit holder(s). In case of physical option, the forms shall carry the wet signature of all the unit holder(s).
In case of online option, instead of wet signature(s) of all the unit holder(s), AMCs shall validate the forms:
i. using e-Sign facility recognized under Information Technology Act, 2000; or
ii. through two factor authentication (2FA) in which one of the factor shall be a One-Time Password sent to the unit holder at his/her email/ phone number registered with the AMC”.
This circular is applicable to all Mutual Funds (MFs), Asset Management Companies (AMCs), Trustee Companies, Board of Trustees of Mutual Funds, Registrar and Transfer Agents (RTAs), Association of Mutual Funds in India (AMFI).
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