Demat and Mutual Fund Accounts Won’t Be Frozen Over Non-submission of Nomination | SEBI

Circular no. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81; Dated: 10.06.2024

Earlier, SEBI extended the deadline for submitting the ‘choice of nomination’ for Demat accounts and mutual fund (MF) folios to June 30, 2024. Now, SEBI has clarified that non-submission will not result in freezing these accounts. Further, security holders with physical securities will receive payments and services even without submitting the nomination. Also, existing investors are encouraged to submit nominations to ensure smooth transmission of securities and prevent unclaimed assets.

Also, to encourage existing investors to provide a ‘choice of nomination,’ a pop-up facility must be provided on a web/mobile application or platform while the investors log into demat and MF accounts. This facility is provided by the Depositories and Depository Participants for demat accounts and by AMCs for MF accounts.

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