Investors Deadline: In today’s time, whether it is a bank account or any other account, it is necessary to provide nominee information and everyone should take it as a responsibility. In such a situation, now Demat account holders and mutual fund investors need to be alert.
Actually, these people have time till September 30 to nominate their successor or opt out of the scheme by filling a declaration. If this is not done, the demat accounts and folios of the investors will be banned. This means that the account will be ‘frozen’, preventing any transactions from taking place.
According to the Securities and Exchange Board of India (SEBI), this order will be applicable to both new and existing investors. This step has been taken to help investors safeguard their assets and hand them over to their legal heirs. Let us tell you that it is important to have a nominee in the account, because if something ever happens to you, your investment kept in the account can be given to him.
What are the new rules of SEBI?
Tejas Khode, co-founder and chief executive officer (CEO), ‘FYERS’, said, ‘This will ensure smooth and seamless transfer of securities to the legal heirs of investors in case of any unfortunate event.’ According to the new SEBI rules, new investors will have to name a ‘nominee’ for their securities while opening trading and demat accounts or opt for an exit through a declaration form.
Be alert
If existing investors (including jointly held mutual fund folios) fail to meet this deadline (September 30), their folios will be frozen and they will not be able to withdraw their investments from it. Additionally, investors’ demat accounts or mutual fund folios will remain ‘frozen’ until they enter nominee details or opt to exit.
Let us inform you that in July, 2021, SEBI had asked all existing eligible trading and demat account holders to provide the option of nominee on or before March 31, 2022. Later it was extended by one more year till March 31, 2023. After this the final praise was extended till 30 September.
