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Act fast! Safeguard your mutual fund investments from freezing

If you don't, you will risk losing access to your investments

SEBI mutual fund nomination rule: Update your nominees by March 31, 2023

In June 2022, SEBI (Securities and Exchange Board of India) published a circular asking mutual fund investors to either nominate a beneficiary or opt-out of it by filling a declaration form.

For new investors, the rule was effective from August 2022, while existing investors were given until March 31, 2023, to update their nomination details or opt-out by submitting the no-nomination form.

If investors fail to provide the nominee or no-nomination form by March 31, 2023, their folios will be frozen. This means they won't be able to make any redemptions or withdrawals from their investment until the necessary details are submitted.

A nomination is a crucial feature that can make transmission of funds smoother in your absence. Without a nominee, your beneficiaries may have to go through legal procedures to receive the funds. Therefore, it's essential to nominate a beneficiary when investing in mutual funds.

If you haven't nominated a beneficiary or don't remember doing so, we strongly recommend that you use this opportunity to update your nomination details. Additionally, it's crucial to revisit your nominations every four-five years to ensure that the details are up to date.

How to add/update a nominee
Are you wondering how to add or update a nominee for your mutual funds? Instead of visiting multiple mutual fund websites, you can visit the Karvy (KFintech) or CAMS website.

For Karvy (KFintech), navigate here and provide your PAN. If your account already exists, you will be prompted to enter an OTP. After authentication, you can view a list of your mutual fund folios where you can add or update the nominee.

To update nominees on the CAMS website, visit this link and navigate to the nomination page. Enter your PAN and select 'Single holder' or 'Joint holder', then click on 'Next'. Select the folios you want to add or update the nominee for and proceed to the OTP authentication. After this, you can choose to 'Register nominee', 'Change/update existing nominee', or 'Nomination opt-out' if you do not want to nominate anyone.

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Alternatively, you can use the MFCentral platform to make changes to all your nominations in one go. Here's how:

  • Go to mfcentral.com and sign up for an account if you don't already have one. You'll need to provide your PAN and mobile number to create an account.
  • Login to your account using your PAN and password, or by using OTP.
  • On the left side of the screen, select 'Service Request' and then click 'Update Nominee Details.'
  • You'll see all your mutual fund investments, including all your folios linked to your PAN and mobile number. Select a specific fund and click 'Next.'
  • If you want to edit an existing nominee, click on edit symbol (indicated as 1 in the screenshot below). If you want to add a new nominee, click 'Add Nominee' (indicated as 2 in the screenshot). If you do not want to add anyone, select 'I do not wish to nominate' (indicated as 3 in the screenshot).
  • After making any changes, click 'Save.'
  • You've now successfully updated your nominee details for that particular folio. Repeat this process for any other folios you want to update.

Note: In case you encounter an error while updating your nominee, please contact your RTA (Registrar and transfer agents), CAMS or Karvy. It's possible that your mobile number and email address are not updated in their systems, which could be causing the issue. Once you update these details, you should be able to update your nominee without any problems.

Suggested watch: All about nominations in mutual funds


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