Nomination Benefits for Investors

A day following the Interim Budget 2024, the capital market regulator, the Securities and Exchange Board of India (SEBI) released a consultation paper proposing to revise and revamp nomination facilities shares, bonds, units of mutual funds (held in both, demat and non-demat form, i.e. Statement of Account), units of Real Estate Investment Trusts (REITs), Alternative Investment Funds (AIF), and other securities held in the dematerialised form.

The consultation paper on revising and revamping nominations is followed in view of the increase in unclaimed financial assets due to incomplete nominations and/or unavailability of nominations in the securities markets.

The regulator believes it can help in reducing unclaimed assets as well as smoothen the process for surviving family/beneficiaries/successors of deceased investors.

The objective behind it is to provide convenience to investors and institutions -- as regards the uniformity in the facilities and procedures for the transmission of financial assets and affording certain choices and flexibilities in nomination facilities.