Capital market regulator Securities Exchange Board of India (SEBI) has deferred the implementation of new rules on nomination for mutual fund investors till October 1.

The new rules pertain to providing an option for mutual fund investors to submit details of nomination or opt out of it was to come into force August 1.

Based on the representation received from AMFI, it has been decided that investors subscribing to mutual fund units after October 1 will have a choice to submit the nomination form or the declaration form for opting out of nomination in physical or online as per the choice of the unitholders.

In case of physical option, the forms will carry the wet signature of all the unitholders. In case of online option, instead of wet signatures of all the unitholders, AMCs shall validate the forms using e-Sign facility or through two factor authentication in which one of the factor shall be a One-Time Password (OTP) sent to the unitholder, said SEBI.

Published on July 29, 2022