Have you added a nominee/s for your mutual fund (MF) investment or opted out in case you don’t wish to have one? If not, then you must do it before the 31 March deadline. Last year, the capital markets regulator Securities and Exchange Board of India (Sebi)released a circular and made it mandatory for all MF investors to either fill in the nominee for their investments or opt out.
In June 2022, Securities and Exchange Board of India (Sebi) published a circular asking mutual fund investors to either nominate a beneficiary or opt out of it by filling out a declaration form.
For new investors, the rule was effective from August 2022, while existing investors were given until March 31, 2023, to update their nomination details or opt out by submitting the no-nomination form.
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However, note that the nomination process is applicable to your non-demat MF holdings while MF investments via a brokerage account, the relevant nominee will be the one applicable at the demat account level.
Why should you update the nominee in MF investments?
It is important to check your funds for updating the nominee information because if you fail to comply with the mandate, your investments will be frozen. This means you won’t be to make any new investments or redemptions from these folios till you submit the relevant details.
Heers’ how to add/update a nominee
You can update your MF nomination by visiting the Karvy (KFintech) or CAMS website instead of going to the multiple mutual fund websites.
For Karvy (KFintech), go to the link here and provide your PAN. If your account already exists, you will be asked to enter an OTP. After authentication, you will see a list of the mutual fund folios where you can add or update the nominee.
In the case of the CAMS website, visit this link and navigate to the nomination page. Then you need to enter your PAN and select ‘Single holder’ or ‘Joint holder’, then click on ‘Next’. Then select the folios you want to add or update the nominee for and proceed to the OTP authentication. You can then choose to ‘Register nominee’, ‘Change/update existing nominee’, or ‘Nomination opt-out’ in case you don’t wish to nominate anyone.
Alternatively, you can also check the MFCentral platform to make changes to all your nominations in one go.