Deadline for Nominee Details: This is useful news for mutual fund investors. If the important work is not completed on time, you may have to suffer a huge loss.
Mutual funds are one of the popular ways to invest money in the stock market. In this, investors not only get the benefit of the stock market boom, but also the losses are reduced due to the portfolio being diverse.
Apart from this, you also get rid of the work of searching and searching for good shares yourself. This is the reason why the number of mutual fund investors is continuously increasing. If you also invest money in mutual funds, then this news is very useful for you.
How much time is left now?
Market regulator SEBI had issued a circular for mutual fund investors in March. In the circular, the deadline for adding nominees was fixed for mutual fund investors. Now the deadline is very close. The last date for this has been fixed as 30 September 2023, which is now barely 2 weeks away. This means that if you also invest money in mutual funds, then you have only about 2 weeks left to do this work related to the nominee.
What will happen after the deadline?
Earlier this deadline was ending on 31st March 2023 only. In fact, SEBI had first issued a circular in this regard on June 15, 2022, in which the deadline of March 31, 2023 was fixed. However, later SEBI issued a new circular on March 28 and extended the deadline till September 30. SEBI had clearly said that if the mutual fund investors do not clarify the position regarding the nominee by the deadline, then their folios will be frozen.
What remedies do investors have?
Mutual fund investors have two solutions to avoid debit freezing of their folios. The first solution is to submit nomination i.e. make someone a nominee. The second option is to opt-out nomination. If you do not want to make anyone a nominee, you will have to tell this. For this you will have to fill the opt-out declaration and submit it.
What will happen in joint account?
If the mutual fund has been purchased by more than one person together, that is, the account is not individual but joint, then in such a situation all the joint holders will have to come together and make a nominee. This is for a situation where all the holders of the joint unit die. Meaning, even if there is a joint unit, it is necessary to complete this work by the deadline.
