Furnish mutual fund nomination before September 30 to avoid facing this penalty; here's what SEBI said
The deadline for mutual fund holders to submit the nominee form has been extended by SEBI to September 30. Check the details below.
The Securities and Exchange Board of India (SEBI) has extended the deadline for providing the Mutual Fund nominee's information from March 31 to September 30 in order to better serve mutual fund investors.
The holders of mutual funds must fill out the nomination information in order to prevent their accounts from being frozen by the next deadline.
“The requirement for nomination/ opting out of nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly, by March 31, 2023, failing which the folios shall be frozen for debits," stated SEBI in its announcement.
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“The provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead of March 31, 2023," the official circular continued.
The circular also advised asset management firms and RTAs to urge their clients to submit their nominations as soon as feasible before the deadline extension.