In an effort to facilitate business dealings, capital markets regulator Sebi on Wednesday made the nomination process for jointly-held mutual fund accounts optional. Sebi also permitted fund firms to assign a single fund manager to manage overseas and commodity investments. The fund’s management expenses would go down as a result.
“Accordingly, it has been decided that the requirement of nomination ….for mutual funds shall be optional for jointly held mutual fund folios,” the Securities and Exchange Board of India (Sebi) mentioned in a circular.
A public consultation was conducted in response to the working group’s recommendation, which allowed fund houses to designate a single fund manager to supervise foreign and commodity investments and optionally make joint mutual fund account nominations.
The deployment of a fund manager would be optional for commodity-based funds, according to Sebi, such as Gold ETFs (exchange traded funds), Silver ETFs, and other funds involved in the commodities market. For both domestic and foreign/commodity funds, the hiring of a single fund manager is meant to lower the fund’s management expenses.
