AMFI simplifies mutual fund transmission process to make claim settlement easier for nominees

The Association of Mutual Funds in India (AMFI) on Friday announced modifications to its Procedure to Claim Units / Proceeds upon death of a Unit holder, aimed at simplifying the mutual fund transmission process. The changes are specifically designed to eliminate operational friction and ensure that the nominees of deceased investors can claim units/ proceeds smoothly.

These updates come in the wake of recent market reports highlighting the administrative hurdles faced by grieving families during the claim process, particularly concerning minor documentation discrepancies.

Also Read |Samir Arora-backed Helios Flexi Cap Fund adds Groww and 5 others, increases stake in HDFC Bank and 14 more


In alignment with regulatory objectives to safeguard investor interests, AMFI has modified the procedure to claim units/proceeds upon death of a unit holder by introducing two investor-friendly measures.

Resolution of address mismatches

This measure is for cases where there is a mismatch in the recorded address of the deceased unit holder. Asset Management Companies (AMCs) are now advised to rely on the latest available address details, provided they are supported by relevant documents.

The harmonized name and signature mismatch framework

This measure tackles discrepancies in the name or signature of the unit holder. AMCs may adopt a similar framework relating to minor and major mismatch for name and signature as provided in Annexure- 10 for RTAs under SEBI Master Circular dated February 6,2026.

The updated SOP guidelines have been communicated to all member AMCs and take effect immediately.

Also Read | Planning retirement & child's education through mutual funds? Expert explains SWP, taxation, portfolio rebalancing

To support the effective implementation of these changes, AMFI proposes to undertake training initiatives through AMCs to ensure consistent application of the revised procedures and alignment with regulatory guidelines.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.