The Securities and Exchange Board of India (SEBI) has implemented new rules to benefit stock market and mutual fund investors.
These rules clarify the role of nominees in managing demat accounts and mutual fund investments.
Starting November 28, nominees will have the authority to make financial decisions on behalf of investors who are incapacitated or unable to act.
This includes full rights to operate the investor’s demat and mutual fund accounts.
Key Benefits for Investors and Their Families
Mandatory Nomination: Investors must now nominate a person to manage their shares and securities in case of their death.
Nominee’s Transaction Powers: Nominated individuals can handle transactions if the investor cannot make decisions.
Increased Number of Nominees: Investors can now nominate up to 10 individuals for their accounts, compared to the earlier limit of 3.
Flexibility to Update Nominees: Investors can change their nominees as often as needed.
Family Convenience: Family members can operate trading accounts through a single mobile number for added convenience.
Role and Requirements for Nominees
Nominees will act as trustees for the investor’s legal heirs. To perform their duties, they must provide verification documents such as a PAN card, passport, or Aadhaar.
These changes aim to simplify account management and protect investor interests while offering more flexibility and control to their families.
