SEBI Update - Ease of Doing Investments- Non-submission of ‘Choice of Nomination’ (i) Doing away with freezing of Demat Accounts and Mutual Fund Folios for existing investors; (ii) To remove freeze on payment of corporate benefits and service of physical folios; (b) Only 3 fields to be provided mandatorily for updating Nomination Details

SEBI, vide circular no. SEBI/HO/MIRSD/POD-1/CIR/2023/193 dated December 27, 2023 extended the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024 failing which demat accounts/folios shall be frozen for debits.

Based on representations received from the market participants, for ease of compliance and investor convenience, the following has been decided for existing investors/ unitholders:

Non-submission of ‘choice of nomination’ shall not result in freezing of Demat Accounts as well as Mutual Fund Folios.

Securityholders holding securities in physical form shall be eligible for receipt of any payment including dividend, interest or redemption payment as well as to lodge grievances or avail any service request from the RTA even if 'choice of nomination' is not submitted by these securityholders.

Payments including dividend, interest or redemption payment withheld presently by the Listed Companies/RTAs, only for want of ‘choice of nomination’ shall be processed accordingly.

To encourage the existing investors to provide 'choice of nomination', a popup shall be provided on web/mobile application/platform to the investors by Depositories and Depository Participants while logging into the Demat Account and by AMCs (including MF RTAs, other platforms providing online execution services) while logging into their MF account. This pop-up may be shown only to those clients whose MF Folios/demat account(s) do not have 'choice of nomination'.

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