SEBI Circular: Market regulator SEBI has extended the last date for nomination in mutual funds and demat accounts. At present the last date for declaring the nominee was 31st December. Now people have been given six more months to complete this work. Now the last date for submitting nominees has been extended to June 30, 2024.
Now the new deadline is June 30, 2024
According to SEBI rules, investors running mutual funds and demat accounts till June 30, 2024 will either have to file a nomination or they can choose not to disclose the nominee. Till now, time was given till 31st December for this work. But, a large number of people were not able to fill their nomination till now. Therefore, market regulator SEBI has postponed this deadline by another 6 months.
SEBI issued circular
SEBI issued a circular on December 27 informing about this decision. Under this, those who do not declare their nominee will have to give an affidavit. In this, SEBI said that keeping in mind the suggestions received from investors and other people in the stock market, the decision to extend the last date has been taken.
First the date was 30th September and then 31st December.
The decision to extend the last date has not been taken for the first time. Till a few months ago the last date was 30 September. But, SEBI had extended it to 31 December. Till that time many investors had not been able to complete the work of filing the nominee.
If the deadline was not extended, investors would have been in trouble.
If the deadline was not extended, investors would have faced difficulty in operating their mutual fund portfolios and demat accounts. Even money cannot be withdrawn from these portfolios and accounts.
Till the end of September, about 25 lakh people were not able to make nominations.
According to the data of Registrar and Transfer Agent (RTA) CAMS, till the end of September, about 25 lakh PAN card holders were not able to update their nominees. Data for December has not been received yet. Making the process of declaring the nominee mandatory will prevent disputes arising after the death of the investor. Also, it will be very easy to transfer or close his account.
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