SEBI wants to make adding nominees to demat, mutual fund easy
SEBI just dropped a proposal March 17 to simplify how you add nominees to your demat and mutual fund accounts.
The idea is to cut out unnecessary steps and make things smoother, especially after getting feedback about the old process being a hassle.
If you have thoughts on these changes, you can share them until April 7.
For new accounts, nomination will be the default option
For new accounts, SEBI has proposed making nomination the default; investors would still be able to opt out.
SEBI has proposed that only the nominee's name and relationship be mandatory, with other details optional.
SEBI has proposed that, if shares are not specified, assets would be distributed equally among nominees.
Nominees capped at 4 (down from 10)
SEBI also plans to cap nominees at four (down from 10), which lines up with what banks do (turns out almost nobody adds more than three anyway).
The number of joint account holders stays at three.
All these tweaks are meant to make passing on your investments simpler and help prevent money from getting stuck unclaimed later.