Finance Desk – The Securities and Exchange Board of India (SEBI) has recently announced important changes for demat and mutual fund account holders.
Previously, SEBI required all investors to nominate someone for their demat and mutual fund accounts. If investors did not comply, their accounts could be frozen.
Now, SEBI has decided to remove this rule. Investors don’t need to worry about their accounts being frozen if they haven’t made a nomination.
Investors holding securities in physical form will continue to receive payments and can still lodge complaints or request services even without a nomination.
However, SEBI still encourages all investors to nominate. Starting from October 1, pop-up reminders will appear on web and mobile platforms for demat accounts and mutual fund accounts for investors to make a nomination.
Why is Nomination Important?
Having a nominee is crucial because it simplifies the process of transferring your investments to someone else. It also helps prevent potential disputes among family members about your assets.
