Sebi streamlines nomination rules for investors. The Securities and Exchange Board of India has proposed significant changes to simplify the nomination framework for demat accounts and mutual fund folios following industry feedback. The key shift makes nomination the default option for new accounts, requiring investors to explicitly opt out through a simple declaration instead of the previous cumbersome OTP and video verification process. Sebi is also reducing mandatory nominee information to just name and relationship, making address, mobile number, email, and share percentages optional. If share percentages are unspecified, assets will be divided equally among nominees. The regulator has capped the maximum number of nominees at four, down from the previously proposed ten, citing operational complexity and data showing most investors appoint only one or two nominees.
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