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.