TaxTMI 
TaxTMI 
TaxTMI 
Revise and Revamp Nomination Facilities in the Indian Securities Market
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.... by the entities addressed in this circular, hereinafter collectively referred to as Regulated entities, as follows; Section A: Reiteration of existing norms to ensure a uniform approach across Securities Market. 2.1. Rule of survivorship 2.1.1. In case of joint accounts / holdings, upon demise of one or more joint holder(s), the regulated entity shall transmit the assets held to the surviving holder(s) vide name deletion [ For Clarification see para 2.1 ] 2.1.2. The surviving member(s) shall receive the assets as owner(s) and not as a trustee. 2.1.3. Surviving joint holders shall be entitled to continue with, or change or cancel the nominations made previously. 2.1.4. The mode of operation (of the joint account), namely that of the first named holder OR anyone or survivor OR either or survivor basis OR joint, etc. shall be un affected by the rule of survivorship. 2.1.5. The norms applicable for operation of the account / folio shall be mutatis mutandis applicable for nomination. 2.2. Simultaneous passing away of joint holders 2.2.1. In case of joint accounts when all joint holders simultaneously pass away, the regulated entity shall transmit the assets in the account....
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.... signature certificate or b) aadhaar based e-sign or by using any other e-sign facility recognized under Information Technology Act, 2000; or c) two factor authentication (2FA) in which one of the factors shall be a One-Time Password sent to the registered mobile number and email address of the investor. 2.10.2. Physical / offline nomination: The regulated entity shall verify the signature(s) as per the mode of holding, while registering or changing nomination. Where an investor affixes his/her thumb impression on the nomination form, then the same shall be witnessed by two persons and details of such witnesses shall be duly captured in the nomination form. However, there shall be no such requirement of witnesses in case of nomination forms carrying wet / digital / e-sign signature of the investor5. 2.11. Regulated entities shall provide acknowledgement to the investor for each and every instance, irrespective of the mode of nomination. They shall maintain physical or electronic records, as the case may be, of the nomination, its acknowledgement etc. for a period of eight years after transmission of the folio/ account. 2.12. Regulated entities shall not place any restriction....
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..... 3.5. Nominee to act on behalf of incapacitated investors [ For Clarification see para 2.3 ] 3.5.1. The regulated entity shall provide the investors having single holding /account / folio, the option to; a) empower, any one of the nominees (excluding minor nominee) to operate the investor's account / folio, if the investor is physical incapacitated, but still has the capacity to contract, b) specify either the percentage or absolute value of assets in the account/ folio that can be encashed by such nominee, c) change such mandate any number of times without any restriction. 5[3.5.2. The provisions of Clause 3.5.1 shall be applicable for a joint account / folio in the event where all the holders are simultaneously incapacitated.] 3.6. Direction to AMCs / their RTAs and DPs: 3.6.1. The broad guidelines to be followed for operation of accounts in case of an incapacitated investor are, as follows: a) Upon receipt of intimation on behalf of such investor, a responsible officer of the regulated entity shall visit the incapacitated investor in person. The aforesaid request shall be accompanied with medical certificate indicating the reason for inability to affix si....
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....ies shall facilitate / extend co-operation to transfer assets from the nominee(s) to the legal heir(s) of an investor, as and when approached by either party. In this regard, the regulated entity shall obtain suitable declaration from the nominee(s) while effecting transmission, as follows; (a) I / We are receiving the assets of the deceased's demat account / MF folio as a trustee to his / her legal heir(s). (b) I / We shall extend all co-operation in transferring such assets to the legal heir(s) either suo moto or when approached by the latter. (c) The regulated entity legally and validly discharged upon transmission of assets to the nominee(s). In case I / We fail to discharge my / our liability, or if there is any dispute between me / us and the legal heir(s) of the deceased, then the regulated entity, shall not be party to such disputes. 7[3.7.2.2] The regulated entity shall be fully discharged from its liabilities upon transmission of assets to the nominee(s). 3.8. In case of joint holdings, the regulated entity shall not seek any documentation including related to KYC, indemnities or undertakings from the surviving joint holder, except copy of the Death Certificate o....
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.... Upon implementation of this Circular, existing investors shall be given an opportunity to revise their choice of nomination. 9. Recognised Depositories are advised to take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this circular. 19[10. AMFI and Depositories shall furnish to SEBI: 10.1. the interim status of readiness of all their constituents to implement this circular, by May 01, 2025 and August 01, 2025. 10.2. confirmation that the formats of the 'nomination form' and the 'Opt-out' form of each of their respective constituents, both in physical and digital mode, as the case may be, are at par with the respective formats provided by SEBI, by September 15, 2025. 10.3. status of implementation of the provisions of this circular by their constituents by November 01, 2025 and thereafter, as may be specified.] 11. This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. This Circular is issued with the approval ....
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....* Provide only number: PAN or Driving Licence or Aadhaar (last 4). Copy of the document is not equired. ****to be furnished only in following conditions / circumstances: * Date of Birth (DOB): please provide, only if the nominee is minor. * Guardian: It is optional for you to provide, if the nominee is minor. 1 ) I / We want the details of my / our nominee to be printed in the statement of holding 10[or statement of account], provided to me/ us by the AMC / DP as follows; (please tick, as appropriate) __Name of nominee(s) __Nomination: Yes / No 2) I hereby authorize__________________ (nominee number ____) to operate my account on my behalf, in case of my incapacitation in terms of paragraph 3.5 of the circular. He / She is authorized to encash my assets up to ___% of assets in the account / folio or Rs.______ 11[Optional] (strike off portions that are not relevant) 3) This nomination shall supersede any prior nomination made by me / us, if any. 12[4) Signature(s) ....
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....amnsmission aspects * AMCs / DPs shall transmit the folio / account to the nominee(s) upon receipt of 1) copy of death certificate and 2) completion / updation of KYC of the nominee(s). The nomimee is not required to provide affidavits, indemnitites, undertakings, attestations or notarization. * 18[In case of a joint account / folio, for transmission to the surviving joint holder(s) by name deletion, the surviving joint holder(s) shall have the option to update residential address(es), mobile number(s), email address(es), bank account detail(s), annual income and nominee(s), either at the time of transmission or at a later date. The regulated entity cannot seek KYC documents from the surviving joint holder(s) at the time of transmission, unless it was sought earlier but not provided by the holder(s).] * Nominee(s) shall extend all possible co-operation to transfer the assets to the legal heir(s) of the deceased investor. In this regard, no dispute shall lie against the AMC / DP. * In case of multiple nomineees the assets shall be distributed pro-rata to the surviving nominees, as illustrated below. % share as specified by investor at the time of nomination % assets to be....
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....n. 9 The SOP can also have additional norms, illustratively for transmission of assets of HUF as per dissolution deed, micro procedure for alternate method when electronic acknowledgement fails, transfer from nominee to legal heir, bank mandate form in transmission etc. 10 Provisions relating to 'Unclaimed Redemption and Dividend Amount' in Chapter 14 of the Master Circular on Mutual Funds (No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024) 11 As in Circular Ref. No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024 12 The norms stipulated for video capture in live environment, liveliness check, etc., in the SEBI Circular No. SEBI/HO/MIRSD/SECFATF/ P/CIR/2023/169, dated October 12, 2023, would be applicable. 13 Circular Ref. No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 titled, "(a) Ease of Doing Investments- Non-submission of 'Choice of Nomination', (b) Only 3 fields to be provided mandatorily for updating Nomination Details" dated June 10, 2024. 14 Annexures A of this circular and Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024, respectively. ************** NOTES:- 1. Inserted vide SEBI/HO/OIAE/OIAE_IAD-3/P/ON/2025/0....