MF Investor Alert! Do this work immediately before 30th September, otherwise your account may be closed
Mutual funds are one of the popular ways to invest money in the stock market. In this, investors not only get the benefit of the stock market boom, but the losses are also reduced due to the portfolio being diversified.
Apart from this, you also get rid of the work of searching and finding good shares yourself. This is the reason why the number of mutual fund investors is continuously increasing. If you also invest money in mutual funds then this news is very useful for you.
How much time is left now?
Market regulator SEBI had issued a circular for mutual fund investors in March. In the circular, the deadline for adding nominees was fixed for mutual fund investors. Now the deadline is very close. The last date for this has been fixed as 30 September 2023, which is now barely 2 weeks away. This means that if you also invest money in mutual funds, then you have only about 2 weeks left to do this work related to the nominee.
What will happen after the deadline?
Earlier this deadline was ending on March 31, 2023. Actually, SEBI had first issued a circular in this regard on June 15, 2022, in which the deadline of March 31, 2023 was fixed. However, SEBI later issued a new circular on March 28 and extended the deadline till September 30. SEBI had clearly said that if mutual fund investors do not clarify the position regarding the nominee by the deadline, then their folios will be frozen.
What remedies do investors have?
Mutual fund investors have two solutions to avoid debit freezing of their folios. The first solution is to submit nomination i.e. Make someone a nominee. The second option is to opt out of enrolment. If you do not want to make anyone a nominee, then you will have to tell this. For this you will have to fill and submit the opt-out declaration.
What will happen in joint account?
If the mutual fund is bought jointly by more than one person, that is, the account is not individual but joint, then in such a situation all the joint holders will have to come together and make a nominee. This is for a situation where all the holders of the joint entity die. Meaning, even if it is a joint unit, it is necessary to complete the work within the deadline.
