Good News For Stock Market Investors! Deadline To Add Nominee Extended To June 30, 2024

With barely a couple of days left for the December 31 deadline for adding a nominee to your mutual fund and demat account, India's market regulator SEBI has given a new-year gift to stock market investors by extending this deadline.

What Is The New Deadline To Add Nominee?

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As per a circular issued this week, SEBI has extended the last date to June 30, 2024. By this date, investors must either choose a nominee(s) or explicitly opt out of nomination by submitting a declaration. So investors need to 'opt-in/opt-out of nomination' in your mutual fund or demat account before June 30, 2024, to avoid your account becoming inactive and getting frozen.

¡°Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ¡®choice of nomination¡¯ for demat accounts and mutual fund folios to June 30, 2024,¡± said the SEBI circular.

When Did SEBI Previously Extend The Deadline?

This is not the first time the nominee deadline has been extended by SEBI. Before December 31st, the deadline was September 30th, 2023. According to numbers from the registrar and transfer agent (RTA) CAMS, about 25 lakh PAN holders had not updated nominations in their mutual fund folios as of September 30, as per the Moneycontrol report.

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Also Read: How The Stock Market Crash Of 1929 Led To World War II

Why Is Adding A Nominee Important?

If you are wondering why having a nominee is important, here's the answer: A nominee plays an important role in transmission, i.e., passing on assets to the next of kin after the investor's demise. And in the absence of a nominee, the process of transmission can become very complex. So as an investor in stocks or mutual funds, having a nominee added will help in the transmission of your invested money to the nominated person, whoever you wish to choose.

Remember that nominations can be made only by individuals applying for or holding units on their own behalf, either singly or jointly.

How To Add A Nominee?

Nomination in the demat account is now mandatory. You can either nominate or explicitly decide to opt out of nomination. NSDL brings you the facility to nominate online for your NSDL demat account. (applicable for single demat account holders and resident individuals). Using this facility, demat account holders can add up to three nominees to their demat accounts.

Click on https://eservices.nsdl.com/instademat-kyc-nomination/#/login and follow the three easy steps.

Step 1 : Enter < DP ID > + < Client ID > + < PAN >. OTP on a mobile number registered in your Demat account.

Step 2 : Select < Nominate > OR < Opt Out >.

Step 3 : e-sign using AADHAAR. OTP on a mobile number registered with UIDAI (AADHAAR).

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Also, for adding nominees to your mutual Find account, you can opt for either of these ways:

Now that adding a nominee to your mutual funds is mandatory, you can add your nominee online. You can either do so on the website or app of the mutual fund with which you have invested, or you can add nominees on the Karvy (KFintech), CAMS, and MFCentral websites.

CAMS and Karvy are mutual fund transfer agents and provide backend services to mutual fund companies. Both CAMS and Karvy handle different asset management companies (AMCs). By logging on to their websites, you can easily update your nomination details for all your mutual funds.

Nominee update with Karvy (KFintech)

To update your nominee with Karvy, you must follow the steps below.

Click here to go to the Karvy nominee update page. Enter your PAN number and select all folios. An OTP will be sent to your mobile and registered email. Enter that OTP to complete verification. After verification, you will see the list of mutual funds in which you have invested, which Karvy manages. Select the funds, add the nominee details, and verify them through OTP.

Nominee update with CAMS

To update your nominee with CAMS, follow the steps below.

Visit the CAMS nominee update page and enter your PAN number. Select email or mobile to receive the OTP. Enter it to view all your mutual fund investments under CAMS. Then select all the funds for which you want to update nominee details and click on Next. Then select Register Nominee and enter the nominee details. Click on proceed to add the nominee details and verify them with OTP. You can also update nominee details offline by filling out the nomination form and submitting it to the Karvy and CAMS offices.

Nominee Update with MF Central

For the uninitiated, MFCentral is the investor services hub conceived by KFintech & CAMS, powering a new era of collaboration by providing convenience to transact across all folios of an investor with an unparalleled user experience.

The following steps will guide you to update your mutual fund nomination with MF Central.

Visit the MF Central website and create an account using your PAN. Once you log in, you will see a list of all your mutual funds. Select the funds and update your nominee by providing all necessary details. Confirm it with an OTP sent to your mobile or registered email address.

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