SEBI Modifies Nomination Norms for Demat Accounts and Mutual Fund Folios
The Securities and Exchange Board of India (SEBI) announced modified norms for nomination in demat accounts and mutual fund folios as part of its 'ease of doing investments' initiative. The changes are aimed at simplifying the nomination process for investors and reducing friction in the transmission of securities and units to nominees. Nomination allows an account holder to designate a person who would receive the assets in the event of the holder's death, easing the claim and transmission process for survivors.
Key Facts & Details
7 points- 1SEBI modified nomination norms for demat accounts and mutual fund folios
- 2Part of SEBI's 'ease of doing investments' initiative
- 3Aims to simplify nomination and ease transmission of assets
- 4SEBI is the regulator of India's securities market
Deep Dive
- +SEBI was established in 1988 and given statutory powers through the SEBI Act, 1992; its headquarters are in Mumbai.
- +A demat (dematerialised) account holds securities such as shares and bonds in electronic form.
- +Nomination eases the transmission of assets to a designated nominee without lengthy legal formalities.
Exam Focus
Key facts: the regulator is SEBI, the instruments are demat accounts and mutual fund folios, and the theme is 'ease of doing investments' / nomination.
Related Topics
Exam Relevance & Angle
SEBI regulations on investor protection and market processes are recurring banking-awareness and financial-awareness MCQ topics.
Target Exams
Background & Context
SEBI periodically updates rules on nomination, KYC, and transmission to protect investors and reduce unclaimed assets in the securities market.
Related GK Concepts
Must KnowTest Yourself
1 / 2Which regulator modified the nomination norms for demat accounts and mutual fund folios under its 'ease of doing investments' push?
This topic is important for:
