The big news is coming for Demat accounts or mutual fund investors. SEBI has made major changes in some rules after the recent meeting, which will directly impact investors. On September 30, SEBI took a big decision and said that now Demat account and mutual fund investors are being given the facility to make 10 nominees, which was only three earlier.
According to the new rules, investors will be able to make decisions more easily, due to which investors will now be able to transfer property easily and its process will also be improved. The paperwork involved in this will also be reduced.
No limit to changing the nominee
According to the rules brought by SEBI, the nominee has the full right to change his nominee as many times as he wants. If the nominee is a minor, then a protected nomination can also be made for him.
Investors are also given the facility of security transfer from unit holders so that the market can disclose the benami property.
Documents required for transfer
If an investor wants to take advantage of the transfer process, then as per SEBI rules, it has been made simple. For this, the nominated person will need documents like a PAN card and passport or Aadhar card.
When any investment is made, the investor becomes its legal guardian and continues to work in the same way. Now joint signature is not required to appoint a nominee in a mutual fund.
Rules of the joint account
According to Hindi law, if a head dies, then a new rule will be implemented to run it. If any goods are mortgaged, then the legal guardian of the nominee will not have the right. In such a situation, the nominee will be nominated for the creditors. Mutual funds or a Demat account will be an optional option.