**Summary:**
SEBI Circular SEBI/HO/IMD/IMD-I/ POD1/CIR/2023/160, issued on September 27, 2023, extends the deadline for mutual fund unit holders to comply with nomination requirements. The circular amends previous directives (SEBI/HO/IMD/IMD-II/ DOF3/CIR/2022/82 dated June 15, 2022; SEBI/HO/IMD/DI/ DOF1/CIR/2022/105 dated July 29, 2022; and SEBI/HO/IMD/DI/ POD1/CIR/2023/47 dated March 28, 2023) regarding nomination or opting out of nomination for existing individual mutual fund unit holders (solely or jointly).
Specifically, the date from which folios would be frozen for debits due to non-compliance with nomination requirements is extended from September 30, 2023, to January 01, 2024.
Asset Management Companies (AMCs) and Registrar to an Issue and Share Transfer Agents (RTAs) are instructed to actively encourage unit holders to fulfill the nomination requirements by sending fortnightly communications (via email and SMS) providing guidance on how to provide nomination or opt-out.
All other provisions outlined in the circulars dated June 15, 2022, and July 29, 2022, remain unchanged.
This circular is issued under the authority granted by Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 77 of SEBI Mutual Funds Regulations, 1996.
For further information, contact Peter Mardi, Deputy General Manager, Investment Management Department, at 022-26449233 or peterm@sebi.gov.in. The circular is available on the SEBI website (www.sebi.gov.in).
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for securities market in India (SEBI)
Mutual Funds: Investment vehicles mentioned as subject to the circular.
Asset Management Companies: Entities managing mutual funds (AMCs)
Registrar to an Issue and Share Transfer Agents: RTAs - entities involved in share registration and transfer
Association of Mutual Funds in India: Industry body representing mutual funds (AMFI)
Securities and Exchange Board of India Act, 1992: The act under which SEBI's powers are conferred
SEBI Mutual Funds Regulations, 1996: Regulations governing mutual funds in India
Peter Mardi: Deputy General Manager, Investment Management Department at SEBI, signatory of the circular
CIRCULAR
SEBI/HO/IMD/IMD-I POD1/P/CIR/2023/160 September 27, 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, and SEBI Circular No. SEBI/HO/IMD/IMD-I POD1/P/CIR/2023/47 dated March 28,
2023 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
September 30, 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 January 01, 2024 instead of
September 30, 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
Page 1 of 277 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
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