Mutual Funds News: SEBI to Freeze Depository Account After 30 September Regarding Nominee Updation

24 Sep, 2023 Author: Ayushee Joshi

Business News: Market regulator the Securities and Exchange Board of India (SEBI) has set a September 30 deadline for mutual fund investors to designate a ‘nominee’ or opt out of the option. SEBI has requested depository participants to notify their clients who have not yet exercised the option of amending the nominee by providing information through e-mail and SMS.

Is Nominee Update Necessary in Mutual Fund?

Many individuals have already entered the name of their nominee, while many others have skipped this choice. This service was created so that if an investor passes away, his nominee can automatically get the profit from his investment, later making the transfer easier. Previously, SEBI had requested mutual fund investors to submit data about the ‘nominee’ by June 2022 or withdraw by August 1, 2022. Later, the deadline was extended to October 1, 2022, and then it ultimately got extended to September 30, 2023. SEBI stated that if the nominee does not provide the option or provides information regarding withdrawing from the option, the folio would be frozen after September 30.