CIRCULAR
SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 June 10, 2024
To
All Recognized Stock Exchanges
All Recognized Depositories
All Mutual Funds
All Asset Management Companies (AMCs)
All Trustee Companies/ Board of Trustees of Mutual Funds
Stock Brokers (Trading Members) through Recognized Stock Exchanges
Depository Participants through Depositories
All Registrars to an Issue and Share Transfer Agents (RTAs)
All Listed Companies through Recognized Stock Exchanges
Association of Mutual Funds in India (AMFI)
Dear Sir / Madam,
Subjects:
(a) Ease of Doing Investments- Non-submission of ‘Choice of Nomination’
(i) Doing away with freezing of Demat Accounts and Mutual Fund
Folios for existing investors;
(ii) To remove freeze on payment of corporate benefits and service of
physical folios;
(b) Only 3 fields to be provided mandatorily for updating Nomination Details
1. SEBI, vide circular no. SEBI/HO/MIRSD/POD-1/CIR/2023/193 dated December 27,
2023 extended the last date for submission of ‘choice of nomination’ for demat
accounts and mutual fund folios to June 30, 2024 failing which demat accounts/folios
shall be frozen for debits.
2. Further, as provided in Master Circular for RTAs dated May 07, 2024, the security
holders holding securities in physical form whose folio(s) do not have PAN, Choice
of Nomination, Contact Details, Bank Account Details and Specimen Signature
updated, shall be eligible:
2.1. to lodge grievance or avail any service request from the RTA only after furnishing
PAN, KYC details and Nomination.
2.2. for any payment including dividend, interest or redemption payment in respect
of such folios, only through electronic mode with effect from April 01, 2024. An
intimation shall be sent by the Listed Company to the security holder that such
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payment is due and shall be made electronically only upon complying with the
above requirements.
3. Based on representations received from the market participants, for ease of
compliance and investor convenience, the following has been decided for existing
investors/ unitholders:
3.1. Non-submission of ‘choice of nomination’ shall not result in freezing of Demat
Accounts as well as Mutual Fund Folios.
3.2. Securityholders holding securities in physical form shall be eligible for receipt of
any payment including dividend, interest or redemption payment as well as to
lodge grievance or avail any service request from the RTA even if 'choice of
nomination' is not submitted by these securityholders.
3.3. Payments including dividend, interest or redemption payment withheld presently
by the Listed Companies/RTAs, only for want of ‘choice of nomination’ shall be
processed accordingly.
4. Notwithstanding the above, all new investors/unitholders shall continue to be
required to mandatorily provide the 'Choice of Nomination' for demat accounts/ MF
Folios (except for jointly held Demat Accounts and Mutual Fund Folios).
5. All existing investors/ unitholders are encouraged, in their own interest, to provide
‘choice of nomination’ for ensuring smooth transmission of securities held by them
as well as to prevent accumulation of unclaimed assets in securities market. The
formats for providing Nomination and Opting-out of Nomination both in case of
Demat Account and MF Folios are provided at Annexure-A and Annexure-B
respectively of this circular.
6. In case of demat accounts, Depository Participants and in case of mutual fund folios,
AMCs and RTAs shall encourage the demat account holders/ mutual fund unit
holders to update ‘choice of nomination’ by sending a communication on fortnightly
basis by way of emails and SMS to all such demat account holders/ mutual fund unit
holders who have not provided the ‘choice of nomination’. The communication shall
provide guidance for demat account holders/ mutual fund unit holders to provide
‘choice of nomination’.
7. Further, to encourage the existing investors to provide 'choice of nomination', a pop-
up shall be provided on web/mobile application/platform to the investors by
Depositories and Depository Participants while logging into the Demat Account and
by AMCs (including MF RTAs, other platforms providing online execution services)
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while logging into their MF account. This pop-up may be shown only to those clients
whose MF Folios/demat account(s) do not have 'choice of nomination'.
8. The provisions of this circular, except clause 7 above, shall come into effect
immediately in supersession of existing provisions. Further, Clause 7 of this circular
shall be applicable from October 01, 2024.
9. Stock Exchanges, Depositories, AMCs, RTAs and Listed Companies are further
advised to:
a) take necessary steps to implement the provisions of this circular, including
making necessary amendment to the relevant bye-laws / business rules /
regulations / operational instructions, as the case may be;
b) bring the provisions of this circular to the notice of their respective
constituents and also disseminate this circular on their websites;
c) communicate to SEBI, the status of the implementation of the provisions
of this circular; and
d) monitor the compliance of this circular.
10. All other provisions related to requirement of Nomination as provided in SEBI Master
Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 for
Mutual Funds, SEBI Master Circular No. SEBI/HO/MRD/MRD-PoD-
2/P/CIR/2023/166 dated October 06, 2023 for Depositories and SEBI Master
Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 07, 2024 for RTAs
shall remain unchanged.
11. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, read with Section 19 of the
Depositories Act, 1996 and Regulation 77 of SEBI (Mutual Funds) Regulations, 1996
and SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, to
protect the interests of investors in securities and to promote the development of,
and to regulate the securities market.
12. This circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework -> Circulars”.
Yours faithfully,
Aradhana Verma
General Manager
Market Intermediaries Regulation and Supervision Department
Tel. No. 022-2644 9354
Email id – aradhanad@sebi.gov.in
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Annexure-A
Format for providing Nomination
I/We wish to make a nomination. [As per details given below]
Nomination Details
I/We wish to make a nomination and do hereby nominate the following person(s) who shall receive all the assets held in my / our account
in the event of my / our death.
Nomination can be made upto Details of 1st Nominee Details of 2nd Nominee Details of 3rd Nominee
three nominees in the account.
Mandatory Details
1 Name of the nominee(s)
(Mr./Ms.)*
2 Share of Equally % % %
each
Nominee [If not equally,
please specify
percentage] Any odd lot after division shall be transferred to the first nominee mentioned in the form.
3 Relationship With the
Applicant ( If Any)
*
Date of Birth and Name of Guardian to be provided in case of minor nominee(s)
Non-mandatory Details
4 Address of Nominee(s)/
Guardian in case of Minor
City / Place:
State & Country:
PIN Code
5 Mobile / Telephone No. of
nominee(s)/ Guardian in case
of Minor
6 Email ID of nominee(s)/
Guardian in case of Minor
7 Nominee/ Guardian (in case
of Minor) Identification
details – [Please tick any one
of following and provide details
of same]
󠄀 Photograph & Signature 󠄀
PAN
󠄀 Aadhaar 󠄀 Saving Bank
account no. 󠄀 Proof of
Identity 󠄀 Demat Account ID
Name(s) of holder(s) Signature(s) of holder*
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Sole / First Holder (Mr./Ms.)
Second Holder (Mr./Ms.)
Third Holder (Mr./Ms.)
* Signature of witness, along with name and address are required, if the account holder affixes thumb impression, instead of
signature.
Note:
This nomination shall supersede any prior nomination made by the account holder(s), if any.
The Intermediary shall provide acknowledgement of the nomination form to the account holder(s)
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Annexure-B
Declaration for opting-out of nomination
I / We hereby confirm that I / We do not wish to appoint any nominee(s) in my / our MF Folio/
demat account and understand the issues involved in non-appointment of nominee(s) and
further are aware that in case of death of all the account holder(s), my / our legal heirs would
need to submit all the requisite documents / information for claiming of assets held in my / our
MF Folio / demat account, which may also include documents issued by Court or other such
competent authority, based on the value of assets held in the MF Folio / demat account.
Name and Signature of Holder(s)*
1.___________________________________2.__________________________________________3___________________________________
* Signature of witness, along with name and address are required, if the account holder affixes thumb impression,
instead of signature.
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