Sebi modifies tips on nomination services in securities market

Markets regulator Sebi on Friday modified its tips and issued mandatory clarifications on nomination services within the securities market in a bid to make the method of transmission and nomination simpler for demat accounts and mutual fund (MF) folios. In its round, Sebi mentioned that if a number of joint account holders go away, the property shall be transferred to the surviving holder(s) with out the necessity for added KYC until it was requested earlier and never offered.

The surviving holder(s) can replace their contact particulars and add or change their nominee(s) at any time.

Additional, buyers may have the choice to designate a nominee (excluding minors) to handle their account in case they grow to be bodily incapacitated. This nominee could be modified as wanted.

On nomination opt-out, Sebi mentioned that buyers with single holdings can select to choose out of nomination both on-line or offline.

The nomination kind has been up to date with modifications like specifying that any odd lot after a division will go to the primary nominee and that passport numbers are acceptable for NRIs.

Sebi mentioned that nominees can declare property in case of the investor’s loss of life and should select to both proceed collectively with different nominees or open separate accounts. The round shall be applied in three phases, beginning on March 1. Some tips shall be enforced from June 1 and September 1. Earlier, Sebi allowed buyers can nominate as much as 10 individuals of their demat accounts and mutual fund folios with impact from March 1.

The investor can specify the precise share of the funding every nominee ought to obtain, thus having the pliability to distribute his investments amongst a number of beneficiaries in response to his needs, stopping disputes and making certain a seamless switch of investments to the rightful heirs upon his passing.

In a separate round, Sebi has directed issuer corporations and service provider bankers to observe the business requirements when disclosing KPIs within the provide paperwork.

This round applies to all draft and last provide paperwork submitted to Sebi or inventory exchanges from April 1, 2025.

To standardize the identification and disclosure of Key Efficiency Indicators (KPIs), the Business Requirements Discussion board (ISF), consisting of ASSOCHAM, CII, and FICCI, in session with SEBI, has developed business requirements for disclosing KPIs in draft and last provide paperwork.

These requirements shall be printed on the web sites of the business associations and inventory exchanges.