Sebi Defers Nomination For Mutual Funt Unit Holders Till October 1

The market watchdog SEBI on Friday postponed the implementation of rules concerning nomination for mutual fund investors till October 1. Earlier, the rule which required those buying mutual fund investment to provide nomination details or to opt out of it was to come into force from August 1, 2022.

Now in the latest circular, SEBI says that those buying mutual fund units from October 1, 2022 will need to provide the nomination details or will need to opt out of it.

The same can be either via the online or offline route. In the offline or physical route, there shall be wet signature of all the unit holders, while in the case of online nomination it shall be the e-sign.

Further, the validation by AMC for the process shall involve two-factor authentication, of them one shall be OTP sent to the unit holder on his or her mobile number or mail. Last year, SEBI gave a similar options to investors opening new trading and demat accounts.

Also, SEBI came up with an operational circular for streamlined administeration of the corporate bond market and for enabling the issuers as well as other parties to get access to all of the guidelines at one place.

The operation circular concerns with ongoing disclosure requirements for issuers of listed non-convertible instruments, commercial paper and securitised debt instruments.