look news india
Mumbai: Capital markets regulator Securities and Exchange Board of India (Sebi) today decided not to freeze mutual fund portfolios and demat accounts of investors even if they have not submitted details of their nominees.
The decision was taken by SEBI based on the representations made in favour of investors
SEBI has taken this decision based on the requests of market participants for existing investors and unit holders, keeping in view the need for ease of compliance and investor convenience. SEBI's circular states that investors holding securities in physical form will be eligible to receive dividend, interest payments.
It may be noted here that Sebi in December last year had extended the deadline for mutual fund investors to update or complete their nominations till June 30, 2024. Investors or unit holders can take up any service request with their mutual fund registrar and transfer agent (RTA) even if they have not been presented with the nomination option. However, all new investors or unit holders must mandatorily opt for nomination except for joint demat accounts and mutual fund portfolios.
SEBI has requested all existing investors and unit holders to give the option of nomination for their ownership interest. This will ensure smooth transmission of their securities as well as prevention of unclaimed property disputes in the securities market. Investors and unit holders who have not yet given their choice for nomination will be informed through SMS and email on a fortnightly basis.
