SEBI Allows Optional Mutual Fund Nomination for Joint Account Holders

  • SEBI has made nomination optional for joint mutual fund accounts to facilitate business. 
  • The requirement of nomination specified under clause 17.16 of the Master Circular for Mutual Funds will be optional for jointly held Mutual Fund folios. 
  • SEBI allows fund managers to employ a single fund manager to manage commodities and foreign investments, reducing the cost of managing funds. 
  • Individual mutual fund holders must submit nominations before June 30, 2024. Failure to comply will result in account freezing for withdrawals. 
  • Nominations can provide additional protection and accelerate asset transfer to beneficiaries in case of an investor’s death. 
  • Investors are advised to evaluate personal circumstances, financial goals, and personal connections before deciding to nominate someone for mutual fund ownership.
Posted in Current Affairs.