SEBI's New Guidelines Revolutionize Securities Market Nomination Process

The Securities and Exchange Board of India (SEBI) has updated guidelines to streamline the nomination process for demat accounts and mutual funds. Important changes include asset transfer without additional KYC, nominee flexibility, and standardized KPI disclosures, promising smoother transitions and investor clarity.

The Securities and Exchange Board of India (SEBI) announced on Friday a series of updates to its guidelines to simplify the nomination process for demat accounts and mutual fund folios. These changes are designed to ease the transmission of assets and improve nomination procedures for investors.

Under the new guidelines, if joint account holders pass away, assets will be transferred to the surviving holder(s) without the need for additional KYC, unless requested previously. Surviving holders are also granted the flexibility to update contact details and change nominees at any time.

Moreover, SEBI has provided investors the option to designate a nominee to manage accounts in cases of physical incapacitation and clarified the process for opting out of nominations. SEBI has also standardized the disclosure of Key Performance Indicators (KPIs), in collaboration with industry groups, to enhance transparency in offer documents submitted from April 2025.