The investor will have to choose his nominee himself and this right will not be with the power of attorney holders.

Now investors will be able to choose a maximum of 10 nominees in their mutual fund portfolio and demat account. Currently, there is a facility to name one or two nominees. All of them can be seen as joint account holders or different nominees can be chosen for different single accounts or folios. This will not only give more options to the investor but will also increase transparency. On January 10, SEBI had issued a circular in this regard and now these changes will be seen from March 1.

Investors will be able to update their nominee details both online and offline. As per the new rules, investors will now have to provide more details of their nominee, which will include PAN card number, driving license or the last four digits of their Aadhaar. Investors will also have to provide the nominee’s correspondence details and their relationship with him/her. If the nominee is a minor, then in such a case the investor will also have to enter his/her date of birth.

Insurance premium payment will also be easy through UPI

Under the new facility, it will be easy to pay insurance premium through UPI from the first date. Everyone will get the insurance related Application Supported by Block Amount (ABS) facility in UPI. With this new facility, people taking life and health insurance will be able to block the amount in the bank account linked to UPI to pay the premium.

The policyholder will receive a payment acceptance message via UPI and upon clicking OK, the premium amount will be automatically transferred. This will also remind the policyholder when he has to pay the next premium. Also, he will not have to worry about the premium amount not being available in the account at the last moment.

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The post New Rule 1st March: It is Mandatory to declare nominee for Mutual fund and Demat accounts from 1st March first appeared on Rightsofemployees.com.

He will get full authority to operate demat and mutual fund accounts. The new rules have come into effect from November 28.

For this, SEBI has amended the ‘Depository and Participants’ regulations. It has been provided that if an investor or shareholder or property owner becomes incapable of taking decisions, then the nominee can take decisions in his place. Some security conditions have also been fixed for this.

Apart from this, the process of transferring property to nominees has also been simplified so that minimum paperwork is required. The new rules are aimed at making things easier for investors and applying a uniform standard for ‘nomination’ facilities in the Indian securities market.

Investors will get this option

1. It will be mandatory for every participant or investor to nominate a person as a beneficiary to whom his securities will be transferred after his death.

Authorised to transact on his behalf in case of the investor’s incapacity.

3. If there are more than one nominees, the investor can Authorise any one of them to transact on his behalf.

Nominees will be able to take decisions here: Demat accounts, mutual funds, ETFs and bond schemes and other securities

Security measures were also taken

As per the new rules, whenever an investment is transferred to the nominees, they will act as trustees for the legal heirs of the investor. The nominees will have to provide documents like PAN, passport number or Aadhaar.

Cases of joint ownership

In cases of joint ownership, the owners may collectively nominate a person who will be entitled to the securities after the death of all the joint participants. Further, the depository and the participants will not be held liable for any action taken on the basis of a nomination provided by the concerned individual.

Relief has been received here too

1. Investors are allowed to nominate up to 10 persons in demat accounts and mutual funds. Earlier this number was limited to three.

2. Nominees can be changed as many times as desired. Additionally, if a minor has been nominated, there will also be an option to declare a guardian for him.

3. Facility will also be available to operate trading accounts of family members from a single mobile number. Till now only one account can be operated from one number.

4. SEBI has urged all existing investors and unit holders to nominate for securities transfer.

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The post SEBI notified new rules related to nomination in Demat and Mutual fund accounts. Check Details first appeared on Rightsofemployees.com.

SEBI has made changes in the nomination rules for mutual funds and demat accounts. This decision was taken in the meeting of SEBI’s board on 30 September. Now investors are allowed to make up to 10 nominees in mutual funds and demat accounts. The question is, aren’t 10 nominees too many? Experts say that this can complicate things. Some experts are calling it impractical. They believe that this can make things difficult instead of making things easier.

Too many nominees can cause problems

Rajat Dutta, founder of Inheritance Needs Services, said that if one or say 10 nominees do not cooperate in implementing the terms of the will after the death of the investor, then it can create problems. SEBI has also said that the nominees of MF accounts or demat accounts will be the trustees and not the last owner. The Supreme Court had said this in its decision in a recent case. According to SEBI, the legal heir of the deceased will not get any legal rights.

Nominee has the right to take decisions on behalf of the incapacitated investor

SEBI has allowed the nominee to take decisions on behalf of incapacitated investors. However, some terms and conditions have been attached to it. Experts say that this is not the right step and it will not stand the scrutiny of the court. More information is still awaited in this regard. The role of a nominee begins when the investor dies. After the death of the investor, the bank, mutual fund or depository participant gives the ownership of the asset to the nominee, because as a trustee his role is that of a beneficiary.

Fraud cases may increase due to new rules

After getting the right to the assets, the nominee is expected to pass on the assets to the rightful heir as per the succession law or as per the will. Dutt says that SEBI has given the nominee the right to take decisions on behalf of the incapacitated investor, which can lead to fraud. This step is not in the interest of Indians who live abroad. There are many Indians living abroad whose parents or siblings live in India.

Signatures of joint holders are not required to add the name of the nominee

The rules for adding or changing the name of the nominee in the mutual fund folio have now become easier. For this, the signatures of the joint holders will no longer be required. This has increased the risk of fraud. Suppose an elderly woman lives alone in a city and the responsibility of taking care of her is on the caregiver. Her children live in another city. In such a situation, the caregiver can add his name as a nominee and withdraw the money.

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The post SEBI changed the rules for nomination in mutual funds and demat accounts first appeared on Rightsofemployees.com.

There is a relief news for mutual fund investors and demat account holders. The Securities and Exchange Board of India (SEBI) said in a circular issued on June 10 that it will not freeze the mutual fund portfolio or demat accounts of those investors who have not provided information related to their nominees.

Apart from this, investors holding securities in physical form will now be eligible to receive any payment such as dividend, interest or redemption of securities. Along with this, investors will be entitled to file a complaint or request any service from the Registrar and Transfer Agent (RTA) even if they do not choose the ‘nomination option’.

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Earlier, SEBI had set a deadline of June 30 for all existing individual mutual fund holders to provide nominee details or opt out of nomination. Non-compliance with the rule could have resulted in a ban on withdrawals from their accounts. However, SEBI said in a circular issued on Monday that keeping in mind the ease of compliance and convenience of investors, it has been decided not to ban mutual fund accounts with demat accounts for not providing ‘nomination option’ for existing investors or unit holders.

The system will continue for new investors.

The market regulator said that payments that were currently stopped due to listed companies or RTAs not providing the ‘nomination option’ can now be settled. Along with this, SEBI clarified that the system of mandatorily providing the ‘nomination option’ for demat account/mutual fund folio to all new investors and mutual fund unit holders will continue.

SEBI issued format

The regulator has asked the depository participant, AMC or RTA to encourage demat account holders or mutual fund unit holders to update the ‘nomination option’ by sending messages on a fortnightly basis through email and SMS. To update the regulator, the name of the nominee, the nominee’s shareholding and relationship with the applicant will have to be disclosed. SEBI has also issued a format for providing the option of nomination and exit from nomination in demat accounts and MF folios.

The post SEBI’s major update, Mutual fund and demat accounts without nominee will not be frozen first appeared on Rightsofemployees.com.

In view of the applications received from market participants, SEBI said in a circular that for ease of compliance and convenience of investors, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024. The decision has been taken.

Along with this, SEBI asked asset management companies (AMCs), depository participants and registrars and transfer agents (RTAs) to encourage demat account holders and mutual fund unit holders to enroll or exit by sending emails or SMS every fortnight. Is. Let us tell you that earlier the last date for nomination was 30th September.

Email or SMS advisory:

Sebi has also asked asset management companies (AMCs), depository participants and registrars and transfer agents (RTAs) to send emails or SMS to demat account holders and mutual fund unit holders every fortnight asking them to enroll or opt out. Have asked to encourage about.

SEBI’s action

Meanwhile, capital markets regulator SEBI has imposed a fine of over Rs 4 crore on five former executives of Federated Electric & Engineering Limited (FEEL) in a case of irregularities and manipulation in the company’s accounts and banned them from the securities market for two years. Is done.

Along with this, he has been banned for two years from holding the post of director or key managerial personnel in any listed company or any registered intermediary. The persons on whom SEBI has imposed fine include Akhtar Aziz Siddiqui, Chief Finance Officer cum Whole-time Director, Member of Accounts Committee and in-charge of Finance and Accounts matters of FEEL, Whole-time Director and Director for FY 2007-08 to FY 2016-17. The signatories to FEEL’s financial statements include Sham Sundar Dhawan.

The post Demat/MF acc holders: SEBI extended last date for nominee declaration in mutual fund and demat accounts first appeared on Rightsofemployees.com.

If you do not make the nomination within this period, the trading and Demat accounts will be frozen for debit. Explain that in July 2021, SEBI, the body regulating the stock market, had asked to give the option of nomination to the existing eligible trading and Demat account holders. The deadline for this was March 2022.However, later SEBI extended this date by one year.

Step 1: Login to your Demat account.

Step2: After this, go to the ‘My nominees’ segment of the page that will open.

Step 3: After this you can choose ‘Add Nominee’ or ‘Opt-out’.

Step 4: File the details of the nominee and upload the ID proof of the nominee. Next, enter the nominee’s share in ‘Percentage’. This means that you have to give the details of what percentage share you want to give to the nominee.

Step 5: After this e-sign the document. This process has to be completed through Aadhaar OTP.

Step 6: After this document verification will take place and the process will be completed within 24-48 hours.

The post Investor Alert! These demat accounts will be frozen after March 31 first appeared on Rightsofemployees.com.