Nomination is now optional for joint mutual fund holdings, states SEBI
The deadline for all current individual mutual fund holders to nominate or choose not to nominate has been established by the regulator at June 30, 2024.
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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.
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