Sebi to not freeze MF portfolios, demat accounts over non-submission of nominee

Sebi's recent circular, issued on June 10, exempts existing mutual fund investors and unitholders from having their portfolios and demat accounts frozen due to non-submission of nomination. This decision, prompted by market representations, aims to enhance compliance ease and investor convenience. \r

Physical securities holders can receive dividends, interest, or redemption payments, and lodge grievances without nomination submission. New investors must provide nomination details, except for jointly held accounts. The circular emphasizes the importance of nomination submission for existing investors, promoting smooth asset transmission and preventing unclaimed asset accumulation. \r

Fortnightly SMS and email reminders will be sent to non-compliant investors, and a pop-up will prompt nomination submission during web/mobile account logins.