If you are a mutual fund investor, you would have experienced the clamour over registrars, asset management companies (AMCs) and distributors nudging you to update the nomination space in your investment papers. To ensure easy transfer of investments in case of death of the investor, the market regulator SEBI (Securities and Exchange Board of India) has been mandating that investors update their nominations. The deadline to complete this action has been extended, but the regulator's intention is clear-to ensure smooth transfer of assets after an investor's demise.
The next step is the recent Sebi circular about introducing a centralised mechanism to record an investor's demise across investment products at one go, which will come into effect from January 1, 2024. The last day for updating one's nominee in mutual fund investments is now December 31, 2023, for smooth processing of one's papers.
Currently, there are multiple stakeholders of import when it comes to mutual fund investments-there is the distributor through whom one may be investing, the AMC in whose schemes one invests, the RTA (registrar and transferring agent) who manages the investment-related records for mutual funds. So, in case of reporting an investor's demise, the family members and nominees need to inform multiple entities to process the investments of the deceased investor.
With the new development, Sebi has introduced a centralised system through which a nominee can reach a mutual fund company or a registrar to report the demise of an investor and, subsequently, it will get updated across all fund houses. There will be no need to reach out to another RTA or AMC to update the demise. Nominees will still need to reach out to different AMCS to make a request for the transfer of MF units, but the documentation process will get simpler and proceeds will reach the nominee's account faster.
This story is from the December 04, 2023 edition of India Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 04, 2023 edition of India Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
BACK IN ACTION
Besides making a thrilling comeback with Tipppsy, Deepak Tijori is working on pushing the boundaries with new projects
THE POWER OF PATIENCE
A steady approach has helped badminton player Lakshya Sen secure a spot in the upcoming Paris Olympics
Great Balls of Fire
The sport of PICKLEBALL is set to get a boost in India with the launch of the World Pickleball League here
Man of Many Ideas
Vanya Vaidehi Bhargav questions simplistic notions of Lala Lajpat Rai's politics in this well-researched book
THE HINDU NATIONALIST
Janaki Bakhle's Savarkar and the Making of Hindutva is a deep dive into the creation of the ideologue
LOVE CONQUERS
IKKA's third album Only Love Gets Reply brings together bigwigs like Diljit Dosanjh, Badshah and Karan Aujla, among others
The Great Indian Village
Everyone's favourite OTT show, Panchayat, is back for a third season on Amazon Prime Video. Expect a lot of laughs
VISUAL CONSTRUCTS
CLASSICS OF MODERN SOUTH ASIAN ARCHITECTURE ARE PORTRAYED IN THESE VOLUMES
TROPICAL TROPES
Tropical Modernism, an exhibition at the V&A, London, looks at the adoption of this architectural style in post-independence India and Ghana
INDIAN ARMY FACES THE GORKHA QUESTION
THE PANDEMIC AND NEPAL'S OPPOSITION TO THE AGNIPATH SCHEME HAVE STALLED GORKHA RECRUITMENT IN THE INDIAN ARMY. THEIR FALLING NUMBERS ARE A STRATEGIC CONCERN FOR INDIA, PARTICULARLY AMIDST RISING SPECULATION ABOUT CHINESE PLANS TO INDUCT THE LEGENDARY SOLDIERS