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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Ease of Doing Investments- Non-submission of 'Choice of Nomination'

10-Jun-2024 | SEBI/HO/MIRSD/POD-1/P/CIR/2024/81

SEBI has issued a circular on (a) Ease of Doing Investments- Non-submission of 'Choice of Nomination' (i) Doing away with freezing of Demat Accounts and Mutual Fund Folios for existing investors; (ii) To remove freeze on payment of corporate benefits and service of physical folios; (b) Only 3 fields to be provided mandatorily for updating Nomination Details.

By virtue of the circular, all new investors/unitholders shall continue to be required to mandatorily provide the Choice of Nomination for demat accounts/ Mutual Fund Folios (except for jointly held Demat Accounts and Mutual Fund Folios).

For existing investors/ unitholders, non-submission of choice of nomination shall not result in freezing of Demat Accounts as well as Mutual Fund Folios and securityholders holding securities in physical form shall be eligible for receipt of any payment including dividend, interest or redemption payment as well as to
lodge grievance or avail any service request from the RTA even if choice of nomination is not submitted by these securityholders.

Also, to encourage the existing investors to provide choice of nomination, a popup shall be provided on web/mobile application/platform to the investors by
Depositories and Depository Participants while logging into the Demat Account and by AMCs (including MF RTAs, other platforms providing online execution services) while logging into their MF account. This pop-up may be shown only to those clients whose MF Folios/demat account(s) do not have choice of nomination. This provision shall be applicable from October 01, 2024.

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