Question: If I am the nominee for mutual fund units, do I become the absolute owner automatically?
Answer: No. SEBI says the nominee is generally a trustee who collects the assets and passes them to the legal heir(s), subject to succession law.

Supporting evidence:
title: sebi.gov.in/1767611333081.pdf
quote: Under the Indian Succession Act, 1925 and Personal Succession Laws, a nominee is merely a trustee, limited to collecting the assets of the deceased and transferring it to the legal heir(s) It has been explicitly stated in the form that nominee(s) will receive the assets held in account/ folio of the deceased investor as trustee and on behalf of legal heir(s)
context: - B nomination once made can be cancelled by submitting a Form SH -14 along with Form ISR-3 declaration for opt out to the respective RTA for effecting the changes.
- 30) Can I provide multiple nominees for my shares?
Yes. You can provide multiple nominees by using Form SH-13
- 31) Can multiple nominees be made case if nominee is a minor?
No.
- 32) Upon demise of the holder of folio/demat account, whether the nominee receives the underlying asset in the capacity of a trustee or absolute owner?
Under the Indian Succession Act, 1925 and Personal Succession Laws, a nominee is merely a trustee, limited to collecting the assets of the deceased and transferring it to the legal heir(s). This legal position has been reiterated by the Hon'ble Supreme Court in its recent order dated December 14, 2023 in the matter of Shakti Yezdani & Anr. Vs. Jayanand Jayant Salgaonkar & Ors.
Accordingly, SEBI circular dated January 10, 2025 read with circular dated February 28, 2025 has reiterated the aforementioned legal position in the Nomination Form for demat accounts and Mutual Fund (MF) folios. It has been explicitly stated in the form that nominee(s) will receive the assets held in account/ folio of the deceased investor as trustee and on behalf of legal heir(s).

Contact details (Postal Address with PIN), E-mail address & Mobile number

- 33) If I hold physical share certificate(s), and want to update my address and contact details in the folio, whom should I approach?
Investor has to approach the RTA or the listed company to make the request. For the contact details of the respective RTA/STA of the listed company, please refer to answer to Q. No. 8 above.

50) Whether RTAs can freeze folios of an investor? If yes, when such freeze can be initiated?

In terms of SEBI's Circular dated November 17, 2023 1 , RTAs cannot freeze the folios of an investor in case of non-updation of PAN or Choice of Nomination or Contact Details or Mobile Number or Bank Account Details or Specimen Signature.
1 https://www.sebi.gov.in/legal/circulars/nov-2023/simplified-norms-for-processing-investor-s-servicerequestsbyrtasand-norms-for-furnishing-pan-kyc-details-and-nomination_79167.html
- 51) Whether my physical shares can be referred to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002 if I do not update PAN or Choice of Nomination or Contact Details or Mobile Number or Bank Accoun