sebi extends deadline for mutual fund nominee selection
SEBI (Securities and Exchange Board of India), the group that looks after the stock market in India, has given more time to people who invest in mutual funds and have demat accounts.
Now, you have until June 30, 2024, to choose someone to get your investments if something happens to you, or to say you don’t want to choose anyone. This is a change from the earlier SEBI deadline of December 31, 2023.
When you choose someone as a nominee, it means if you’re not there, your investments like shares and mutual funds go smoothly to the person you picked. Without a nominee, your family might have to go through long and difficult legal steps to get your investments.
If you miss the new deadline, SEBI might freeze your accounts. This means you can’t take money out of your mutual funds or use your demat account for buying or selling shares.
It’s not too hard. For your demat account, you go online, find the section for ‘My Nominees’, and follow the steps to add a nominee or say you don’t want one.
You’ll need to give details about the person you’re choosing, like their ID, and how much of your investments they should get, and confirm it with an Aadhaar OTP.
Remember, only individual investors can choose nominees. This means groups like companies or partnerships can’t do this.
If you have a joint account, the nominee gets the investments if one owner passes away. People from other countries investing in India can also choose a nominee, but they can’t do it through someone else.
For mutual funds, you can add a nominee when you start investing or even later. You can do this on the mutual fund’s website or NSDL’s website. You can pick up to three people as nominees and decide how much each should get. All the owners of the investment need to sign the form.
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So, it’s a good idea to decide on a nominee soon. It’s not just about following rules; it’s about making sure your investments are taken care of the way you want, without any trouble for your family.
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