The Securities and Exchange Board of India (SEBI), which oversees the capital markets, announced that you no longer have to name a nominee for joint mutual fund accounts. This change was made in a circular issued on April 30, 2024.
Further, Sebi asked asset management companies (AMCs) and RTAs to encourage the unit holder to fulfill the requirement for nomination/ opting out of the nomination by sending a communication on a fortnightly basis by way of emails and SMS to all such unit holders who is not in compliance with the requirement of nomination.
Nomination is a process of appointing a person to take care of your assets in the event of death. It is mandatory for new folios/accounts opened by investors to make a nomination. In case an investor does not wish to nominate, they can opt out of the process while filling up the form.