Nomination for Mutual Fund Unit Holders - Extension of timelines

Securities and Exchange Board of India 
Circular No. SEBI/HO/IMD/IMD-I POD1/P/CIR/2023/47 
Dated: March 28, 2023 

To 
All Mutual Funds 
All Asset Management Companies (‘AMCs’) 
All Trustee Companies/ Boards of Trustees of Mutual Funds 
All Registrar to an Issue and Share Transfer Agents (‘RTAs’) 

Association of Mutual Funds in India (‘AMFI’) 

Sir / Madam, 

Subject: Nomination for Mutual Fund Unit Holders – Extension of timelines 

1. SEBI vide Circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82 dated June 15, 2022 read with SEBI Circular No. SEBI/HO/IMD/IMD-I DOF1/P/CIR/2022/105 dated July 29, 2022, prescribed the requirement for nomination/ opting out of nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly, by March 31, 2023, failing which the folios shall be frozen for debits.

2. Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead of March 31, 2023. 

3. AMCs and RTAs shall encourage the unit holder(s) to fulfil the requirement for nomination/ opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holder(s) who are not in compliance with the requirement of nomination. The communication shall provide guidance by which the unit holder(s) can provide nomination or opt out of nomination. 

4. All other provisions of Circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82 dated June 15, 2022 and SEBI/HO/IMD/IMD-I DOF1/P/CIR/2022/105 dated July 29, 2022 shall remain unchanged. 

5. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 

6. This Circular is available on SEBI Website at www.sebi.gov.in 

Yours faithfully, 
Peter Mardi 
Deputy General Manager 
Investment Management Department 
Tel: 022 – 26449233 
Email: peterm@sebi.gov.in