Mutual Fund News : SEBI Extends Mutual Fund Nominee Updation Deadline to December 31, 2023

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The market regulator Securities Exchange Board of India (SEBI) has extended the deadline for Nominee Updation to December 31, 2023 for mutual fund investors.

Erstwhile, SEBI required mutual fund subscribers to submit nomination data or a declaration to opt out of nomination by March 31, 2023. Later, this deadline was extended to September 30, 2023. And mutual fund investors with existing mutual fund folios, including jointly owned ones, had to name a beneficiary or opt out until September 30, failing which their folios will be frozen and they will be unable to redeem their investments.

In a circular dated on June 15, 2022, SEBI made the nomination mandatory for the existing mutual fund folios, including the jointly held ones by August 1, 2022. The deadline was later extended to October 1, 2022, then to March 31, 2023 and later to September 30, 2023. It is mandatory for new mutual fund unit holders to submit either the nomination form or declare that they are opting out of the nomination before the deadline.

However, on Wednesday through a recent circular dated September 27, 2023, SEBI announced that, "Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from January 01, 2024 instead of September, 2023.”

In simple words, SEBI has further extended the deadline for adding a nominee or submitting a no-nomination form for your mutual fund investments from September 30, 2023, to December 31, 2023.

Mutual fund investors, who already have submitted their nomination details, do not need to resubmit their nomination details.

Since the deadline for linking PAN with Aadhaar was June 30, 2023, now investors whose PAN and Aadhaar are not linked will be unable to use their PAN as it has become inactive. However, if you pay a specific amount of penalty fee, you can still re-activate your PAN.

The Income Tax department states that a PAN can become operative again in 30 days following disclosure of Aadhaar is submitted to the relevant authority and a penalty fee of Rs 1,000 is paid.

To know more about the ‘How to add nominee in mutual funds online’ you may read our article… Don't Miss the Deadline: Update Your Mutual Fund Nominees Soon