SEBI Defers Nomination Framework Rollout Amid Operational Challenges

The Securities and Exchange Board of India (SEBI) has postponed the implementation of the third phase of its nomination framework for the securities market due to operational challenges. Originally set for December 15, the new date will be announced later. This decision follows representations from industry bodies.

The Securities and Exchange Board of India (SEBI) has decided to defer the implementation of the third phase of its nomination framework for the securities market. Originally scheduled for December 15, the date has been pushed back, citing operational challenges faced by stakeholders.

The delay comes after SEBI introduced guidelines in January aimed at revamping the nomination process for mutual fund folios and demat accounts to enhance transparency. Industry bodies had called for phased implementation due to challenges in adapting existing systems.

SEBI's new rules allow account holders to nominate up to 10 persons, with assets distributed equally among nominees in absence of allocation specifications. The guidelines also strengthen vetting processes, requiring nominees to act as trustees rather than direct inheritors.

(With inputs from agencies.)