SEBI Updates Nomination Rules for Demat Accounts and Mutual Fund Folios
SEBI has issued revised guidelines for demat account and mutual fund nominations under its 'Ease of Doing Investments' initiative to improve asset transfer efficiency. Ease of doing investments Ease of doing investments - Modified Norms for Nomination in Demat Accounts and Mutual Fund Folios SEBI | Ease of doing investments - Modified Norms for Nomination in Demat Accounts and Mutual Fund Folios Securities and Exchange Board of India is made for protect the interests of.
SEBI's May 29, 2026 circular overhauls nomination procedures for individual investors, moving away from rigid requirements that previously risked freezing accounts. By introducing more flexible 'opt-in' and 'opt-out' mechanisms, the regulator aims to minimize the compliance burden and reduce the volume of unclaimed assets in the system.
The updated framework encourages digital adoption, requiring stockbrokers, depository participants, and asset management companies to facilitate these nomination updates via online portals and mobile apps. This shift streamlines succession planning, ensuring a more direct route for legal heirs to access assets held in electronic format.
- Initiative: Ease of Doing Investments
- Scope: Demat accounts and Mutual Fund folios
- Regulator: SEBI
- Effective Date: May 29, 2026
Glossary
Demat Account: A dematerialized account used to hold financial securities in electronic format.
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