SEBI has postponed the decision to freeze mutual fund folios without nomination to September 30, 2023 instead of March-end.
In a circular issued on Tuesday, SEBI said last July it had prescribed the requirement for nomination and opting out of it for all the existing individual unit holders holding mutual fund units either solely or jointly by March 31, 2023 failing which the folios shall be frozen for debits.
Based on representations received from the market participants, SEBI, on Tuesday, said it has been decided that the provision with regard to freezing of folios, shall come into force with effect from September 30 instead of March-end.
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It also said AMCs and RTAs shall encourage the unit holders to fulfil the requirement for nomination and opt out of it by sending a communication on fortnightly basis by way of emails and SMS to all such unit holders who are not in compliance with the requirement of nomination.