SEBI has simplified nomination norms for demat accounts and mutual fund folios, introducing default nomination, opt-out options, and reduced documentation.
SEBI Streamlines Nomination Framework
SEBI has introduced simplified nomination rules for demat accounts and mutual fund folios, effective immediately. The new framework includes default nomination for individual accounts, an opt-out facility, and reduced KYC and documentation requirements.
Key features include recognition of single-tier nominations, elimination of need for legal heir affidavits in small accounts, and harmonization across depositories and AMCs. The move aims to improve ease of transfer and reduce post-death disputes.
This reform benefits retail investors and estate planners. Practitioners must advise clients on updating nomination records and understanding the limits of nomination vs. succession rights under personal law. The changes reflect SEBI’s shift toward investor-centric compliance.
