Sebi Securities changes guidelines on nominations in the market

Markets Regulator Sebi on Friday changed its guidelines and issued the necessary clarity on the nomination facilities in the Securities Market, so that the process of transmission and nomination for demat accounts and mutual funds (MF) foles should be facilitated. In its circular, Sebi said that if one or more joint holders pass through, the property will be transferred to the surviving holder (s) without the need for additional KYC, unless it was not requested and provided earlier.

The existing holder (s) can update their contact details and add or replace their nominee (s) at any time.

Next, investors will have the option of designating a nominee (other than a minor) to manage their account if they become physically unable. This nominal can be changed as needed.

At the nomination OPT pt-out, SEBI said investors with single holdings could choose to exit OR Naline or Offline Fallline Nominations.

It has been updated with changes to specify the nomination form that any fantastic flour after the division will go to the first nomination and that passport numbers are acceptable for NRI.

Sebi said that nominated people can claim property in case of death of investors and either choose to continue with other nominated people or open separate accounts.

The circular will be applied in three phases starting on March 1.

Some guidelines will be implemented during June 1 and September 1. Previously, SEBI allowed investors could nominate up to 10 people in their demat accounts and mutual fund falls, which would affect March 1.

The investor can refer to a certain percentage of investments received to each nominee, thus relieving the distribution of their investments among many beneficiaries according to his wish, confirming the seamless transfer of investment to the right heirs.

In a separate circular, SEBI has directed issuer companies and business bankers to follow industry standards while announcing KPI in the offer documents.

This circular applies to all draft and final offer fur documents submitted to SEBI or Stock Exchange from April 1, 2025.

To standardize the identity and advertisement of key performance indicators (KPI), industry standards forum (ISF), including SOCHAM, CII and FICI, have developed industry standards to disclose KPI in draft and final offer fur documents, consultation with SEBI.

These standards will be published on the websites of industry organizations and stock exchanges.