**Summary:**
SEBI Circular SEBI/HO/IMD/IMD-I/ DOF3/P/CIR/2023/47, dated March 28, 2023, extends the deadline for mandatory nomination or opting out of nomination for existing mutual fund unit holders. The original deadline of March 31, 2023, for freezing folios due to non-compliance has been extended to September 30, 2023. This decision was made based on representations from market participants. Asset Management Companies (AMCs) and Registrar to an Issue and Share Transfer Agents (RTAs) are directed to proactively encourage unit holders to comply with the nomination requirement by sending bi-weekly communications (emails and SMS) providing guidance on how to submit a nomination or opt out. All other provisions outlined in Circular No. SEBI/HO/IMD/IMD-II/ DOF3/P/CIR/2022/82 dated June 15, 2022, and Circular No. SEBI/HO/IMD/IMD-I/ DOF1/P/CIR/2022/105 dated July 29, 2022, remain in effect. This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and 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, referred to as SEBI.
Mutual Funds: Investment vehicles regulated by SEBI.
Asset Management Companies: Companies that manage mutual funds, abbreviated as AMCs.
Association of Mutual Funds in India: Industry association of mutual funds in India, abbreviated as AMFI.
Registrar to an Issue and Share Transfer Agents: Entities responsible for managing and transferring shares, abbreviated as RTAs.
SEBI Circular No. SEBI/HO/IMD/IMD-II/ DOF3/P/CIR/2022/82 dated June 15, 2022: A circular issued by SEBI regarding nomination requirements for mutual fund unit holders.
SEBI Circular No. SEBI/HO/IMD/IMD-I/ DOF1/P/CIR/2022/105 dated July 29, 2022: A circular issued by SEBI regarding nomination requirements for mutual fund unit holders.
Securities and Exchange Board of India Act, 1992: Law that establishes and governs the powers and functions of SEBI.
CIRCULAR
SEBI/HO/IMD/IMD-I POD1/P/CIR/2023/47 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
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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