The market regulator, Sebi, on Wednesday announced an extension of the timeline for the implementation of the second and third phases of the nomination process in the securities market, citing operational difficulties expressed by the Depositories, depository participants, and Industry Associations as the primary reason.
In its circular, Sebi stated that the implementation date for Phase II, originally scheduled for June 1, has been extended to August 8, while the date for Phase III, earlier set for September 1, has been deferred to December 15.
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This extension follows representations from the Depositories ( CDSL, NSDL), depository participants, and Industry Associations (ANMI, CPAI) requesting more time to carry out system developments and process changes required for implementing Phase II.
Additionally, the depositories, after consultation with depository participants and ANMI, requested an extension of the timeline for implementing Phase III of the Nomination Circular until December 15, 2025, to allow sufficient time for development and testing.
“All other provisions in the aforementioned circulars dated January 10, 2025, and February 28, 2025, shall continue to remain the same,” Sebi stated in its circular.
In January, Sebi issued guidelines to revise and revamp nomination facilities in the Indian securities market.
Following these guidelines, based on representations from various stakeholders and discussions held, amendments and clarifications to the January circular were announced.
As per the February circular, some of the key amendments include: in the case of joint accounts/holdings, upon the demise of one or more joint holders, the regulated entity shall transmit the assets to the surviving joint holder(s) by deleting the name(s) of the deceased. However, the regulated entity must provide the surviving joint holder(s) with the option to transmit the assets into another existing or new account/folio.
An investor with a single holding/account/folio can opt out of nomination, either online or through the physical/offline mode.
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Regulated entities shall not reject transmission via name deletion to the surviving joint holder(s) for non-submission of KYC details, unless the KYC documents had previously been requested and were not provided.
If a joint account/folio becomes a single holding after the demise of one or more holders, either a nomination or an opt-out is mandatory. For investors opening new accounts/folios online, the opt-out must be submitted online. For those using the offline/physical mode, the opt-out must be submitted offline as well.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
In its circular, Sebi stated that the implementation date for Phase II, originally scheduled for June 1, has been extended to August 8, while the date for Phase III, earlier set for September 1, has been deferred to December 15.
Also Read | NFO Insight: Can this multi asset allocation fund help diversify your portfolio?
This extension follows representations from the Depositories ( CDSL, NSDL), depository participants, and Industry Associations (ANMI, CPAI) requesting more time to carry out system developments and process changes required for implementing Phase II.
Additionally, the depositories, after consultation with depository participants and ANMI, requested an extension of the timeline for implementing Phase III of the Nomination Circular until December 15, 2025, to allow sufficient time for development and testing.
“All other provisions in the aforementioned circulars dated January 10, 2025, and February 28, 2025, shall continue to remain the same,” Sebi stated in its circular.
In January, Sebi issued guidelines to revise and revamp nomination facilities in the Indian securities market.
Following these guidelines, based on representations from various stakeholders and discussions held, amendments and clarifications to the January circular were announced.
As per the February circular, some of the key amendments include: in the case of joint accounts/holdings, upon the demise of one or more joint holders, the regulated entity shall transmit the assets to the surviving joint holder(s) by deleting the name(s) of the deceased. However, the regulated entity must provide the surviving joint holder(s) with the option to transmit the assets into another existing or new account/folio.
An investor with a single holding/account/folio can opt out of nomination, either online or through the physical/offline mode.
Also Read | MF Tracker: UTI Mid Cap Fund turns Rs 10,000 SIP to nearly Rs 1.62 crore in 2 decades
Regulated entities shall not reject transmission via name deletion to the surviving joint holder(s) for non-submission of KYC details, unless the KYC documents had previously been requested and were not provided.
If a joint account/folio becomes a single holding after the demise of one or more holders, either a nomination or an opt-out is mandatory. For investors opening new accounts/folios online, the opt-out must be submitted online. For those using the offline/physical mode, the opt-out must be submitted offline as well.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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