SEBI makes nomination optional for mutual funds

In the recent notification released by the Securities Exchange Board of India has started the mutual fund unit holders’ nomination has been made optional. It is now to the investors whether they want to provide a
nomination or opt out of it by submitting a declaration form. This shall be applicable to investors post the 1st of August, 2022.

The regulator has given all the asset management companies a deadline of the 31st of March, 2023 for the option regarding nominating and opting out of nomination of mutual fund unitholders either solely or jointly.
If the unitholders fail to update the necessary details, then their folios shall be frozen.