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TMI BlogRevise and Revamp Nomination Facilities in the Indian Securities MarketX X X X Extracts X X X X X X X X Extracts X X X X ..... e entities addressed in this circular, hereinafter collectively referred to as Regulated entities, as follows; Section A: Reiteration of existing norms to ensure a uniform approach across Securities Market. 2.1. Rule of survivorship 2.1.1. In case of joint accounts / holdings, upon demise of one or more joint holder(s), the regulated entity shall transmit the assets held to the surviving holder(s) vide name deletion 2.1.2. The surviving member(s) shall receive the assets as owner(s) and not as a trustee. 2.1.3. Surviving joint holders shall be entitled to continue with, or change or cancel the nominations made previously. 2.1.4. The mode of operation (of the joint account), namely that of the first named holder OR anyone or survivor OR either or survivor basis OR joint, etc. shall be un affected by the rule of survivorship. 2.1.5. The norms applicable for operation of the account / folio shall be mutatis mutandis applicable for nomination. 2.2. Simultaneous passing away of joint holders 2.2.1. In case of joint accounts when all joint holders simultaneously pass away, the regulated entity shall transmit the assets in the account / folio to the registered nominee(s) for effecting its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the registered mobile number and email address of the investor. 2.10.2. Physical / offline nomination: The regulated entity shall verify the signature(s) as per the mode of holding, while registering or changing nomination. Where an investor affixes his/her thumb impression on the nomination form, then the same shall be witnessed by two persons and details of such witnesses shall be duly captured in the nomination form. However, there shall be no such requirement of witnesses in case of nomination forms carrying wet / digital / e-sign signature of the investor 5 . 2.11. Regulated entities shall provide acknowledgement to the investor for each and every instance, irrespective of the mode of nomination. They shall maintain physical or electronic records, as the case may be, of the nomination, its acknowledgement etc. for a period of eight years after transmission of the folio/ account. 2.12. Regulated entities shall not place any restrictions on the number of instances an investor can make, change or cancel his/her nomination. 2.13. Regulated entities shall provide in their periodic statement of holding, either the a) name(s) of the nominee(s) or b) whether or not nomination has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such mandate any number of times without any restriction. 3.6. Direction to AMCs / their RTAs and DPs: 3.6.1. The broad guidelines to be followed for operation of accounts in case of an incapacitated investor are, as follows: a) Upon receipt of intimation on behalf of such investor, a responsible officer of the regulated entity shall visit the incapacitated investor inperson. The aforesaid request shall be accompanied with medical certificate indicating the reason for inability to affix signature by the investor and its tenure. b) This officer shall first hand ascertain that the investor has the capacity to contract (i.e. to exclude investors in ventilator, coma or unconscious) c) Depending on the nature and degree of incapacitation, this officer shall obtain a thumb or toe impression or a mark 8 , as the case may be, on the written request for transacting in the account / folio of the incapacitated investor, in the presence of an independent witness. d) This officer shall record his/her name, signature and suitable remarks to the effect that Thumb impression / toe impression / mark affixed in my presence on the written request of the client. e) Any encashment by such nominee shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een me / us and the legal heir(s) of the deceased, then the regulated entity, shall not be party to such disputes. 4.7.2.2 The regulated entity shall be fully discharged from its liabilities upon transmission of assets to the nominee(s). 3.8. In case of joint holdings, the regulated entity shall not seek any documentation including related to KYC, indemnities or undertakings from the surviving joint holder, except copy of the Death Certificate of the deceased. 3.9. In accounts / folios with multiple nominees, where some portion is transmitted to the nominee(s) and the remaining portion is unclaimed by the other nominee(s) the DP / AMC shall allow the unclaimed portion to continue in the existing account / folio and not permit any other transactions in such accounts / folio, other than transmission to the remaining nominee(s). 3.9.1. Further, the DP shall flag such demat accounts for additional due diligence and furnish periodical report of such accounts to the concerned Depositories, and; 3.9.2. AMC shall treat any money payable / attributable to such folio at par with the extant norms pertaining to treatment of unclaimed money 10 and flag such folios for additional due diligence. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. This Circular is issued with the approval of the competent authority. 12. This Circular is available on SEBI website at www.sebi.gov.in under the categories Legal - Circulars . Yours faithfully, S. Manjesh Roy General Manager Officer of Investor Assistance and Education Investor Awareness Division - 3 Tel no.: +91-22-2644 9710 or 4045 9710 [email protected] Annexure - A (SEBl/HO/OlAE/OlAE_lAD-3/P/ON/2025/01650, dated January 10, 2025) Nomination Form for Demat Accounts and Mutual Fund (MF) Folios I / We hereby nominate the following person(s) who shall receive all the assets held in my / our account / folio in the event of my / our demise, as trustee and on behalf of my / our legal heir(s) * Nomination Details Mandatory Details Additional Details **** Name of nominee Share of nominee (%) ** Relation ship Postal Address Mobile number E-mail Identity Number *** D.o.B. of nominee Guardian Nominee 1 Nominee 2 Nominee 3 Nominee 4 Nominee 5 Nominee 6 Nominee 7 Nominee 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the residual unclaimed asset shall continue to be with the AMC in case of MF units and with the concerned Depository in case of Demat account. You have the option to designate any one of your nominees to operate your account / folio, if case of your physical incapciation. This mandate can be changed any time you choose. The signatories for this nomination form in joint folios / account, shall be the same as that of your joint MF folio / demat account. i.e. 'Either or Survivor' Folios / Accounts - any one of the holder can sign 'Jointly' Folios / Accounts - both holders have to sign Tramnsmission aspects AMCs / DPs shall transmit the folio / account to the nominee(s) upon receipt of 1) copy of death certificate and 2) completion / updation of KYC of the nominee(s). The nomimee is not required to provide affidavits, indemnitites, undertakings, attestations or notarization. Nominee(s) shall extend all possible co-operation to transfer the assets to the legal heir(s) of the deceased investor. In this regard, no dispute shall lie against the AMC / DP. In case of multiple nomineees the assets shall be distributed pro-rata to the surviving nominees, as illustrated be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to sign. 9 The SOP can also have additional norms, illustratively for transmission of assets of HUF as per dissolution deed, micro procedure for alternate method when electronic acknowledgement fails, transfer from nominee to legal heir, bank mandate form in transmission etc. 10 Provisions relating to Unclaimed Redemption and Dividend Amount in Chapter 14 of the Master Circular on Mutual Funds (No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024) 11 As in Circular Ref. No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024 12 The norms stipulated for video capture in live environment, liveliness check, etc., in the SEBI Circular No. SEBI/HO/MIRSD/SECFATF/ P/CIR/2023/169, dated October 12, 2023, would be applicable. 13 Circular Ref. No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 titled, (a) Ease of Doing Investments- Non-submission of Choice of Nomination , (b) Only 3 fields to be provided mandatorily for updating Nomination Details dated June 10, 2024. 14 Annexures A of this circular and Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024, respectively. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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