Have you added nominee for your mutual fund (MF) folio? If, you have not done the same, then hurry as only seven days are left 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 Mutual Fund (MF) investors to either fill in the nominee for their investments or opt out.
MF investors: How to check or add nominee details?
One option is to approach each fund house for this. But that’s a lot of work. There’s a quicker and more efficient way. You can use the MF Central India platform to change all your nominations across multiple fund houses in one go.
Mutual Fund (MF) investors: How to add a nominee
-Login in to http://mfcentral.com
-If you don’t have an account, you’ll need your PAN and mobile number to create one.
-Select ‘Service Request’ and ‘Update Nominee Details.’
-You’ll see all your mutual fund investments.
-Next to each fund, you can see whether you have a nominee added
-In case you don’t have one, select that fund and add a nominee.
-You’ll need to fill in information like the nominee’s name, address, etc.
-You can select ‘I do not wish to nominate’ if you do not want to add anyone.
-If you encounter an error while updating your nominee, contact your Registrar and transfer agents (RTA) – CAMS or Karvy.
Why should you update the nominee in MF investments?
If you fail to update your nominee by March 31, 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.
Sebi circular on MF nominee addition
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.
The nomination process is applicable to your non-demat mutual fund holdings while MF investments via a brokerage account, the relevant nominee will be the one applicable at the demat account level.
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