SEBI makes nominating someone optional for joint mutual fund accounts

New Delhi . Capital markets regulator SEBI has made it optional to nominate an individual for jointly held mutual fund accounts to boost ease of doing business. Additionally, SEBI has permitted ‘fund houses’ to have a single ‘fund manager’ to oversee commodity and foreign investments. This will reduce the cost of its management. SEBI has taken this step after a working group constituted by it reviewed mutual fund regulations and recommended measures to ease doing business.

A public consultation was conducted based on the recommendation of the Working Group, with the option of making nomination of a nominee in joint mutual fund accounts optional and allowing ‘fund houses’ to have a single fund manager to oversee commodity and foreign investments. Suggested. “Accordingly, it has been decided that nominating someone in a joint mutual fund folio will be optional,” the Securities and Exchange Board of India (SEBI) said in a circular. Experts believe that nominating someone for joint holders would be optional. Relaxation in nomination requirements would be beneficial. With this, the living member will be considered nominated which will ease the process of nomination.

The regulator has fixed June 30, 2024 as the last date for all existing individual mutual fund holders to nominate an individual. If they fail to comply, their accounts will be ‘frozen’ for withdrawals. In a separate circular, the regulator informed about simplifying the existing provision regarding fund managers. SEBI said the appointment of a dedicated fund manager for commodity-based funds such as gold ETFs (exchange traded funds), silver ETFs and other funds participating in the commodity market will be optional. Also, appointment of a dedicated fund manager for making foreign investments will also be optional. The purpose of appointing a fund manager for domestic and foreign/commodity funds is to reduce the cost of management.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.

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