BackMF unit holders must furnish declaration form for opting out of nomination: Sebi
Investors subscribing to mutual fund units on or after August 1, 2022, will have two choices when it comes to the nomination – a) providing nomination in the format specified by Sebi (or) b) opting out of nomination through a signed declaration form.
PremiumThe Securities and Exchange Board of India (Sebi) has come out with a circular stating that the mutual fund unit holders must furnish a separate declaration form if they do not want to file a nomination for their holdings.
Investors subscribing to mutual fund units on or after August 1, 2022, will have two choices when it comes to the nomination – a) providing nomination in the format specified by Sebi (or) b) opting out of nomination through a signed declaration form.
Both the forms will be made available by the mutual fund houses to the subscribers. The opt-out declaration form can be submitted to the fund house either in a physical or online form as per the choice of the unit holder (all the unitholders if the units are held jointly). For the physical option, the forms must carry the wet signature of the unitholders. In the case of the online option, the forms must have an e-Sign instead of the wet-signature, as per the SEBI circular.
Sebi asked all the fund houses to ensure that adequate systems are in place for providing the eSign facility and to maintain the confidentiality and safety of client records.
The new rule is applicable to the existing investors as well. Sebi advised all the fund houses to set March 31, 2023 as a deadline for nomination / opting out of a nomination for all the existing unit holders failing which the folios will be frozen for debits.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
