As per new Mutual Fund rules by SEBI, Investors either need to specify Nominee details at the time of submitting the application or submit a signed declaration to opt out of nomination. More important is that existing MF investors will also have to either specify a nominee or opt out of nomination by 31st March 2023. This can be done Online or submitting physical forms with the respective AMC’s.
Failure to do so will result in the MF folio getting frozen, implying that investments cannot be redeemed.
In fact, it becomes the moral responsibility of each Investors that they should update the nominee details in the Investment and specially check all old investments and update them with their nominee details otherwise the Investment may get stuck and their nominee may not be able to avail the benefits of the Investments.