Demat Mutual Fund Account: If you also trade in the stock market, this is an important news for you. It is most important to make a nominee in any kind of investment like demat and mutual fund.
So that, in case of any kind of emergency, your investment can go to the right person. SEBI has set a deadline for demat account holders to file a nominee by June 30, 2024. You must complete the work of making a nominee by June 30.
Is it necessary to make a nominee?
The reason behind this move by SEBI is to help investors secure their assets and pass them on to their legal heirs. Market regulator SEBI has also stated that the order to file a nominee applies to both new and existing investors. Under SEBI’s rule, new investors will have to either appoint a nominee for their securities while opening trading and demat accounts or formally opt out of the nomination through a declaration form. That is, you will state through this declaration form that you do not want to appoint anyone as a nominee.
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SEBI has extended the deadline several times
Sebi had initially set a deadline of March 31, 2023 for account holders to nominate beneficiaries or formally exit. The regulator had indicated that failing to do so would result in the account being deactivated. The deadline was later extended twice, the last time to December 31, 2023. Despite the warnings and extension of deadlines, investors are still not filing nominees.
