Mutual fund investors and demat account holders have got a breather after Sebi has allowed a further extension to the deadline for completing the process of nomination or opting out till June 30.
All existing individual unit holders holding mutual fund units either solely or jointly, were required to have a nomination or opt out of nomination, effective from January 1, 2024, failing which their folios were to be frozen. The same deadline was also applicable for demat account holders.
The regulator has asked depository participants, asset management companies and registrar and transfer agents to encourage demat account holders and mutual fund unitholders to fulfil the requirement of nomination.
Update process
CAMS and KFintech have enabled the facility to opt-in or opt-out of nomination for all individual mutual fund investors. Based on the AMCs, a unitholder can select either of these two service providers, the links of which are available on the AMFI website.
Unitholders would have to provide their PAN number and OTP sent to their registered mobile to log in and update the nomination. Alternatively, duly signed physical forms can also be submitted.
For demat account holders, opt-in/opt-out nomination facilities are available on the NSDL website. DP ID, Client ID and PAN would be required before an OTP authentication.