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

NSDL - Common Standard Operating Procedure (SOP) for operation of accounts in case of an incapacitated investor Applicable to Depositories and Mutual Funds

12-Sep-2025 | NSDL/POLICY/2025/0120

NSDL issued the circular regarding the Common Standard Operating Procedure (SOP) for the operation of accounts in case of an incapacitated investor, Applicable to Depositories and Mutual Funds. Through this Circular, NDSL has informed regarding the creation of a Common Standard Operating Procedure (SOP) by Depositories and AMFI (Association of Mutual Funds in India), to ensure uniformity in handling incapacitated investors, as well as those with special needs, or who are elderly or unwell, within the securities market. The term "incapacitation" here refers specifically to physical incapacitation, where the individual still retains the legal capacity to enter into a contract as defined under Section 11 of the Indian Contract Act, 1872. Accordingly, this SOP does not cover investors who are otherwise incapacitated due to being in a coma, unconscious, or dependent on ventilator support. Furthermore, the procedure to be followed by registered intermediaries for operating accounts in the case of an incapacitated investor is detailed in Paragraph 3 of the Annexure A. Also, NSDL has attached a copy of the revised Letter for intimating the Incapacitation of the investor and the relevant authorisation herewith as Annexure B to the document

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