Sebi extends nomination deadline for mutual fund unit holders to December 31

Market regulator Securities and Exchange Board of India (Sebi) has extended the deadline for nomination for mutual fund unit holders to December 31, 2023 from an earlier September 30 deadline, a Sebi circular issued on Wednesday said.

Through its circulars dated July 29, 2022 and March 28, 2023, the market regulator prescribed the requirement for nomination/opting out of a nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly, by September 30, 2023, failing which the folios were to be frozen for debits.

The decision has been taken following representations received from the market participants. The circular said that the freezing of folios will come into force with effect from January 1, 2024, instead of September 30, 2023.


The circular has also asked asset management companies (AMCs) and registrar & transfer agents (RTAs) to encourage the unit holders to fulfill the requirement for nomination or opt out of nomination by sending a communication on a fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.

The action is being taken to protect the interest of investors in securities and to further regulate the securities market, the circular said.

The market watchdog has also relaxed the rules with regard to adding a nomination for the trading accounts by making it a voluntary requirement. Earlier, the regulator said all trading accounts and dematerialised accounts, which do not have ‘choice of nomination’ by September 30, will be frozen.

However, the regulator relaxed the rule as a step towards ease of doing business, following representations from the exchanges, depositories, and brokers’ associations.

Further, with respect to demat accounts, SEBI has extended the last date for submission of ‘choice of nomination’ to December 31, according to its circular.

This is the second time the regulator has extended the deadline. Earlier, the deadline to update the nomination on demat accounts was postponed to September 30 from March 31.

For those holding physical shares, the timeline for submission of PAN, nomination, contact details, bank account details, etc. has been extended to December 31.

The regulator has asked stock exchanges, depositories, and listed companies to take the necessary steps to implement the revised rules.

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