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TMI BlogAmendments and clarifications to Circular dated January 10, 2025 on Revise 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 ..... s held to the surviving joint holder(s) vide name deletion of the deceased holder(s). However, the regulated entity shall provide the option to surviving joint holder(s) to transmit the assets held, into another existing or new account /folio. 2.2. Clause 2.8: An investor having single holding / account / folio can opt-out of nomination, either online or through physical / offline mode. The online mechanism for opting-out of nomination is outlined at clause 3.10 of the circular. 2.3. Clause 3.5: An investor having single holding / account / folio can, at any point of time, empower any one of the nominees (excluding minor nominee) to operate the investor's account / folio, in the event where the investor is physically incapacitated, but still has the capacity to contract. Further, the investor can change such nominee any number of times, without any restriction. 2.4. Clause 3.8: (a) Under the extant KYC read with PMLA norms, regulated entities are required to maintain the complete KYC records of account / folio holders at all times. Accordingly, in case of transmission of joint holdings vide name deletion, the regulated entities shall not seek the KYC of the surviving holder(s) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular, the following sentence is inserted after the phrase "(only the document number is required to be provided; not the document)": However, in case of NRI / OCI / PIO, Passport number is acceptable. 7. Under Clause 3.5 of the circular, the following provision is inserted as new Clause 3.5.2: 3.5.2. The provisions of Clause 3.5.1 shall be applicable for a joint account / folio in the event where all the holders are simultaneously incapacitated. 8. Under Clause 3.7.2 of the circular, the sub-clauses 4.7.2.1 shall be read as "3.7.2.1" and 4.7.2.2 as "3.7.2.2" respectively. 9. Nomination Form for demat accounts and Mutual Fund (MF) folios at Annexure- A to the circular stands modified to the following extent: (a) In the explanation for the column "Share of nominee (%)", the sentence "Any odd lot after division / fraction of %, shall be transferred to the first nominee mentioned in the nomination form", is inserted. (b) In the explanation for the column "Identity Number", the sentence "However, in case of NRI / OCI / PIO, Passport number is acceptable", is inserted. (c) At point no. 1, the phrase "or statement of account" is inserted after the words "statement of holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught earlier but not provided by the holder(s). 10. Clause 10 of the circular stands replaced with the following: 10. AMFI and Depositories shall furnish to SEBI: 10.1. the interim status of readiness of all their constituents to implement this circular, by May 01, 2025 and August 01, 2025. 10.2. confirmation that the formats of the 'nomination form' and the 'Opt-out' form of each of their respective constituents, both in physical and digital mode, as the case may be, are at par with the respective formats provided by SEBI, by September 15, 2025. 10.3. status of implementation of the provisions of this circular by their constituents by November 01, 2025 and thereafter, as may be specified. 11. Clause 11 of the circular stands modified as under: This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 60A of the SEBI (Depositories and Participants) Regulations, 2018 and Regulation 29A of the SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. This Circular is issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; Nominee 4 Nominee 5 Nominee 6 Nominee 7 Nominee 8 Nominee 9 Nominee 10 *Joint Accounts: Event Transmission of Account / Folio to Demise of one or more joint holder(s) Surviving holder(s) through name deletion The surviving holder(s) shall inherit the assets as owners Demise of all joint holders simultaneously - having nominee Nominee Demise of all joint holders simultaneously - not having nominee Legal heir(s) of the youngest holder ** If % is not specified, then the assets shall be distributed equally amongst all the nominees. Any odd lot after division / fraction of %, shall be transferred to the first nominee mentioned in the nomination form. (see table in 'Transmissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arate single account / folio. * In case all your nominees do not claim the assets from the AMC / DP, 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, in case of your physical incapacitation, at any point of time and not just during opening of account / folio. This mandate can be changed any time you choose. * The signatories for this nomination form shall be as per mode of holding in the folio(s) / demat account(s) i.e. * 'Either or Survivor' Folios / Accounts - any one of the holder can sign * 'First holder' Folios / Accounts - only First holder can sign * 'Jointly' Folios / Accounts - all holders have to sign Transmission 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. * In case of a joint ..... X X X X Extracts X X X X X X X X Extracts X X X X
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