The regulator has advised all mutual fund houses to set a deadline of March 31, 2023, for nomination or opting out of nomination for all the existing individual unit holders holding mutual fund units either solely or jointly. Failing from this will result in freezing of folios from debit.
“AMC shall provide an option to the unit holder(s) to submit either the nomination form or the declaration form for opting out of nomination in physical or online as per the choice of the unit holder(s),” SEBI said in the circular.
Unit holders filling the physical form shall carry the original signature and in case of online option, the forms shall be using e-sign facility.
Mutual fund houses are expected to have an adequate system for eSign facility and must ensure all necessary steps to maintain confidentiality and safety of client records.
Earlier, nomination facility was mandatory to start new investments.