On 29-07-2022, the Securities and Exchange Board of India (‘SEBI') has extended the timeline for Nomination for Mutual Fund (‘MF') Unit Holders till October 01, 2022 in order to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Key points:
1. Investors, who are subscribing to mutual fund units from October 1 will have the choice of providing nomination or opting out nomination.
2. Asset Management Companies (AMCs) will have to provide an option to the unit holder to submit either the nomination form or the declaration form for opting out of nomination in physical or online mode as per the choice of the unit holder.
3. AMCs shall validate the forms using e-Sign facility recognized under Information Technology Act, 2000 or through two factor authentication (2FA) in which one of the factorshall be a One-Time Password sent to the unit holder at his/her email/ phone number registered with the AMC.