MF nomination deadline soon; non compliance may lead to freezing of units
Mumbai: All individual mutual fund unit holders are required to either nominate or opt out of nomination by September 30, 2023. Failure to do so will result in the freezing of their mutual fund folios for debits, reported ET.
The deadline for mutual fund investors to provide nominee details is September 30, 2023.
Through a circular on March 28, 2023, the Securities and Exchange Board of India (Sebi) said, "Based on representations received from the market participants, it has been decided that 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."
Those who do not wish to submit nominations, they can submit an opt-out declaration to prevent their mutual fund units from being frozen.
Investors who want to opt in or out of nomination but have not yet provided their nomination information can do so by visiting the trading platforms of stock brokers or depository participants who offer this service.