Amendments and clarifications to Circular dated January 10, 2025 on Revise and Revamp Nomination Facilities in the Indian Securities Market

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....1. Clause 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 joint holder(s) vide name deletion of the deceased holder(s). However, the regulated entity shall provide the option to surviving joint holder(s) to transmit the assets held, into another existing or new account /folio. 2.2. Clause 2.8: An investor having single holding / account / folio can opt-out of nomination, either online or through physical / offline mode. The online mechanism for opting-out of nomination is outlined at clause 3.10 of the circular. 2.3. Clause 3.5: An investor having single holding / account / folio can, at any point of time, empower any one of the nominees (excluding minor nominee) to operate the investor's account / folio, in the event where the investor is physically incapacitated, but still has the capacity to contract. Further, the investor can change such nominee any number of times, without any restriction. 2.4. Clause 3.8: (a) Under the extant KYC read with PMLA norms, regulated entities are required to maintain the complete KYC records of account / folio holders at a....

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....so specify the percentage share for each nominee": Any odd lot after division / fraction of %, shall be transferred to the first nominee mentioned in the nomination form. 6. In Clause 3.1.1(a) of the circular, the following sentence is inserted after the phrase "(only the document number is required to be provided; not the document)": However, in case of NRI / OCI / PIO, Passport number is acceptable. 7. Under Clause 3.5 of the circular, the following provision is inserted as new Clause 3.5.2: 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. 8. Under Clause 3.7.2 of the circular, the sub-clauses 4.7.2.1 shall be read as "3.7.2.1" and 4.7.2.2 as "3.7.2.2" respectively. 9. Nomination Form for demat accounts and Mutual Fund (MF) folios at Annexure- A to the circular stands modified to the following extent: (a) In the explanation for the column "Share of nominee (%)", the sentence "Any odd lot after division / fraction of %, shall be transferred to the first nominee mentioned in the nomination form", is inserted. (b) In the e....

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.... 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). 10. Clause 10 of the circular stands replaced with the following: 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. Clause 11 of the circular stands modified as under: This Circular....

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....f my / our legal heir(s) * Nomination Details   Mandatory Details Additional  Details **** Name of nominee Share of nominee (%)** Relation ship  Postal Address  Mobile number & E-mail Identity Number *** D.o.B. of nominee Guardian Nominee 1                 Nominee 2                 Nominee 3                  Nominee 4                 Nominee 5                 Nominee 6                  Nominee 7                 Nominee 8                 Nominee 9     ....

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....p; Second Holder (Mr./Ms.)         Third Holder (Mr./Ms.)         * Signature of two witness(es), along with name and address are required, if the account holder affixes thumb   impression, instead of wet signature. Rights, Entitlement and Obligation of the investor and nominee: • If you are opening a new demat account / MF folios, you have to provide nomination. Otherwise, you have to follow procedure as per 3.10 of this circular.   • You can make nomination or change nominee any number of times without any restriction.  • You are entitiled to receive acknowledgement from the AMC / DP for each instance of providing or changing nomination.  • Upon demise of the investor, the nominees shall have the option to either continue as joint holders with other nominees or for each nominee(s) to open separate single account / folio.  • In case all your nominees do not claim the assets from the AMC / DP, then the residual unclaimed asset shall continue to be with the AMC in case of MF units and with the concerned Deposi....