SEBI Update: Nomination for Mutual Fund Unit Holders –Extension of timelines.

SEBI vide its Circular dated 28th March 2023 issued for All Mutual Funds, All Asset Management Companies(‘AMCs’), All Trustee Companies/Boards of Trustees of Mutual Funds, All Registrar to an Issue and Share Transfer Agents(‘RTAs’), Association of Mutual Funds in India(‘AMFI’).

The circular states:

SEBI has announced an extension of the nomination deadline for mutual funds unit holder from March 31^st ,2023 to September 30^th, 2023.

Earlier the deadline was March 31^st, 2023. Through a circular on March 28^th, 2023, SEBI 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.

Assets Management Companies (AMCs) and Registrar and Transfer Agents (RTAs) are require encourage the unit holder to fulfill the requirement for nomination/opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holder who are not in compliance with the requirement of nomination. The communication should include guidance on how to nominee or opting out of nomination.

All other provisions of circular dated June 15, 2022 and July 29, 2022 shall remain unchanged.

This circular shall come into effect from March 28^th, 2023.

Link: https://www.sebi.gov.in/legal/circulars/mar-2023/nomination-for-mutual-fund-unit-holders-extension-of-timelines_69465.html