Nominee Rules For Mutual Fund: If you are no more in this world due to some untoward incident, then know the rules related to Nominee so that the appropriate fruits of your investment can reach your family very easily.
Nominee Rules: Investment is done to improve our lives and handle the burden of expenses even in bad circumstances. It is this good habit of investing that has kept us Indians safe in difficult times like economic recession and has provided a sense of financial security to our families. But, while investing, it is very important for us to have correct and proper information about all the rules related to it. One of these very important rules is related to the nominee of the investment. Recently SEBI has made changes in the rules related to information to be given in the event of death of the investor, which will come into effect from January 01, 2024. It is very important for all of you to know these KYC rules.
Information and verification process will become easier
SEBI has changed the rules to simplify the process of informing and verifying the death of an investor. Under this, the joint account holder, nominee, legal advisor or family member will have to do online or offline verification one day after receiving the death certificate and PAN number. After this, a copy of the nominee’s identity card, relationship with the deceased and contact details will have to be given. If for some reason all the necessary documents are not received after the intimation of death, then the KYC status of the investor will have to be put on hold.
What will happen in case of joint account?
The company will have to inform about the change in KYC and all the documents will have to be uploaded. Also, the facility of debit from the deceased account or portfolio will have to be stopped. In case of joint account, the account will remain active.
What will companies have to do?
The process of checking the documents entered in the system will have to be started. Also, information in this regard will have to be collected from people associated with the investor. After the death certificate is verified, the company will have to close the account completely and this information will have to be given to all the parties. If any deficiency is found in the papers, then changes in KYC will have to be made and this information will have to be given to the people related to the deceased.
What will the relatives of the deceased have to do?
On receiving the information of completion of KYC, they will not have to do any transaction related to the account of the deceased. If KYC status is stated to be on hold then they will have to provide other required documents.
