The SEBI, which takes care of the market, has given more time to choose someone for mutual funds and demat accounts.
Before, you had to pick someone by December 31, but now they’ve extended the time.
Now, people have an extra six months to finish this task. The new deadline for putting in names has been moved to June 30, 2024.
Now the new deadline is June 30, 2024
As per SEBI rules, if you have mutual funds or demat accounts until June 30, 2024, you must either pick someone to receive the funds or decide not to share that information.
The previous deadline for this was December 31, but now you have more time.
However, many people couldn’t choose someone to receive the funds by now. So, SEBI, the market regulator, has moved the deadline to six months later.
SEBI issued circular
SEBI shared a message on December 27 about this choice. If you don’t pick someone to receive the money, you’ll need to provide a written statement.
In this, SEBI mentioned that they decided to give more time by considering the ideas from investors and other people in the stock market.
First the date was 30th September and then 31st December
This is not the first time they decided to give more time. A few months ago, the deadline was September 30th.
However, SEBI extended it to December 31st. Until then, many investors hadn’t finished choosing someone to receive the money.
If the deadline was not extended, investors would have been in trouble
If they didn’t extend the deadline, investors would have had trouble managing their mutual fund and demat accounts. They wouldn’t be able to take out money from these accounts.
Till the end of September, about 25 lakh people were not able to make nominations.
As per information from the Registrar and Transfer Agent (RTA) CAMS, until the end of September, around 25 lakh PAN card holders couldn’t update their nominees.We don’t have the data for December yet.
Making it necessary to declare a nominee will help avoid conflicts that might occur after the investor passes away. It will also make it easier to transfer or close their account.
