Sebi's New Guidelines for Mutual Fund Nomination

In a significant move to enhance transparency and reduce unclaimed assets in the securities market, the Securities and Exchange Board of India (Sebi) has introduced comprehensive guidelines to revamp the nomination process for mutual fund folios and demat accounts. These new regulations, set to take effect from March 1, aim to streamline the nomination process for investors and regulated entities, including asset management companies (AMCs).

The initiative comes after extensive consultations with stakeholders, including a public consultation paper released in February 2024. Sebi's efforts are focused on ensuring a more transparent and efficient securities market, benefiting both investors and the broader financial ecosystem.