From 1 April 2023, 3 new rules are coming into force for investors. If it is not updated in your Demat account and mutual fund account before March 31, then you may have to bear heavy losses. At the same time, a rule is also changing in April last.
Let’s know what are those rules, which are going to change…
The first of these four rules is about Mutual Fund nomination. Existing investors of the mutual fund have time till March 31 to opt out or name the nominee by submitting a declaration form. Failure to do so will result in closure of investors’ accounts. Investors who do not do this, their investment will be banned. Investors can give these declarations online on the sites of Registrars and Transfer Agents (RTAs)- KF intech and CAMS or Mutual Fund Central.
Let us tell you that this process can be more challenging for joint accounts. “Joint holders who have not updated their contact details are required to submit the filled in documents. “It is even more challenging in case of a joint holder who is an NRI,” says Chennai-based MF distributor Mahesh Mirpuri. Let us tell you that if you have invested through demat account, then you will have to update your nominee details with your brokerage.
