SEBI has directed all mutual fund houses to either get investors, both new and existing, to nominate or specify in a given format that they don’t want to nominate. From August 1 2022 onwards, any new investor planning to invest in mutual funds shall have the choice to provide nomination or to opt out of nomination through a signed declaration form.
Even for existing investors, all folios held in a single name or jointly, need to have a nominee or an explicit opting-out declaration. As an existing mutual fund investor, if your folio does not have a nominee but you wish to nominate, it is better to approach the fund house and provide the nomination. The deadline applicable for existing investors is 31st March 2023. If you fail to do so, your mutual fund folios will get frozen and you will not be able to redeem or withdraw your money from April 1, 2023. If you do not wish to nominate, still, you will be required to sign a declaration form. As an existing investor you may anyways receive communication soon from the respective fund house.
For both the options – nomination or otherwise – investors can fill up the physical form and submit to fund house or the registrar and transfer agents. In case the investor is keen to complete the process online, then the person can either use an e-Sign or can send the fund house a scanned copy of the duly signed format applicable.