compliance simplified

Nomination for Mutual Fund Holders

SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82                                                   June 15, 2022

 

Subject: Nomination for Mutual Fund Unit Holders

In order to bring uniformity in practices across all constituents in securities market, the following is decided in case of nomination for eligible Mutual Fund Unit Holders:

(1) Investors subscribing to mutual fund units on or after August 1, 2022, shall have the choice of:

(a) Providing nomination in the format specified in fourth schedule of SEBI (Mutual Funds) Regulations, 1996 (or) 

(b) Opting out of nomination through a signed Declaration form as provided in Annexure – A to this circular.

(2) AMC shall provide an option to the unit holder(s) to submit either the nomination form or the declaration form for opting out of nomination in physical or online as per the choice of the unit holder(s). In case of physical option, the forms shall carry the wet signature of all the unit holder(s) and in case of online option, the forms shall be using e-Sign facility recognized under Information Technology Act, 2000, instead of wet signature(s) of all the unit holder(s).

(3) All AMCs shall ensure that adequate systems are in place for providing the eSign facility and take all necessary steps to maintain confidentiality and safety of client records.

(4) All the AMCs are advised to set  deadline as March 31, 2023 for nomination / opting out of nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly as mentioned at para 1 above, failing which the folios shall be frozen for debits.

(5) This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

(6) This circular is available on SEBI website at www.sebi.gov.in.

Declaration Form for opting out of nomination

[Annexure A to SEBI circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82 dated June 15, 2022 on Nomination for Eligible Mutual Fund Unit Holder(s)]

 

To

Mutual Fund / AMC’s Name

Mutual Fund / AMC’s Address

Date

D

D

M

M

Y

Y

Y

Y

 

Mutual Fund Folio Number

 

Sole / First Holder Name

 

Second Holder Name

 

Third Holder Name

 

I / We hereby confirm that I / We do not wish to appoint any nominee(s) for my mutual fund units held in my / our mutual fund folio and understand the issues involved in nonappointment of nominee(s) and further are aware that in case of death of all the account holder(s), my / our legal heirs would need to submit all the requisite documents issued by Court or other such competent authority, based on the value of assets held in the mutual fund folio.

Name and Signature of Unitholder(s)

 

Unitholder  (1) Signature: _______________________ Name: _______________________ 

 

Unitholder  (2) Signature: _______________________ Name: _______________________ 

 

Unitholder  (3) Signature: _______________________ Name: _______________________