SEBI Regulations: If you put money into the stock market and mutual funds, the market regulator SEBI has provided you with significant relief. SEBI has announced new regulations concerning nominees in demat and mutual fund accounts as well as other securities issues.
What regulations has made by SEBI?
In this scenario, if the investor cannot act or is incapacitated, the nominee will have the authority to make financial decisions for him. The benefit of this arrangement is that the nominee will receive complete authority to manage the demat and mutual fund account. The new regulations have been in effect since November 28. To offer this assistance to everyday investors, SEBI has revised the ‘Depository and Participants’ exchanges.
Every investor will be required to designate someone as a beneficiary
Due to this alteration, it has been established that if an investor or shareholder is unable to make a decision, a nominee may act on their behalf. Nevertheless, certain security conditions have been maintained for this purpose. Every investor will be required to designate someone as a beneficiary, ensuring that their shares and securities are transferable upon death. An individual selected by the investor may be permitted to act on their behalf if the investor is unable to do so. If there are multiple nominees, the investor can designate any single individual to act on his behalf. Investors will have the option to nominate 10 individuals in demat accounts and mutual funds.
Previously, this number was restricted to 3. Investors can modify the nominee as often as they wish. There will additionally be an option to manage trading accounts for family members using the same mobile number. In general, the nominees will serve as guardians for the investor’s legal heirs. To accomplish this, the nominees must submit documents such as PAN, passport number, or Aadhaar.
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