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 {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
A Life IN MUSIC
To celebrate five decades of a storied musical career, Padma Shri Hariharan is headlining a special concert in Delhi on November 30
MURDERS MOST FOUL
SAMYUKTA BHOWMICK'S DEBUT NOVEL, A FATAL DISTRACTION, IS A WHODUNIT THAT GOES BEYOND MERELY PAYING TRIBUTE TO THE MASTERS OF THE GENRE
Jungle Book
Avtar Singh creates a compelling tableau of characters brought together and torn asunder by migration, epidemic and circumstance
BON VOYAGE
The award-winning stage adaptation of Yann Martel's Life of Pi is coming to Mumbai this December
Earning His ACTING CHOPS
HIS LATEST STINT IN THE BUCKINGHAM MURDERS, WHICH JUST RELEASED ON NETFLIX, CEMENTS THE MULTI-HYPHENATE RANVEER BRAR'S REPUTATION AS A FINE ACTOR
Strike a Pose
SOONI TARAPOREVALA'S SERIES DEBUT WAACK GIRLS ON PRIME VIDEO SHINES A LIGHT ON THE STREET DANCE STYLE OF WAACKING
FATAL ATTRACTION
In I Want to Talk, Shoojit Sircar continues his exploration of death with the portrait of a tenacious man who beats it time and again
LOVE LETTER TO THE MOUNTAINS
'Journeying Across the Himalayas' is a new multidisciplinary festival in Delhi with a focus on the Himalayan region and its communities
The Art of CURATION
Sunil Kant Munjal, founder patron of the Serendipity Arts Foundation, on how one of our biggest multi-disciplinary festivals came about and what to look forward to in this edition
THE ROCKY ROAD AHEAD
A US court's allegations of bribery in solar power contracts and US markets watchdog SEC's charges of concealing wrongdoings have jolted Gautam Adani's business empire. Even as he mounts a strong defence against the indictment, the group faces a crisis of investor confidence that may impact its growth plans
