The Securities and Exchange Board of India (Sebi) on Monday said it would not freeze demat accounts and mutual fund folios of investors if they didn’t submit nomination.
The decision for existing investors has been taken based on representation from market participants as it would ease compliance and investor confidence. Investors holding securities in physical form would be eligible for receipt of dividend, interest or redemption payment as well as to lodge grievance even if they didn’t provide nomination, Sebi said in a circular.
The regulator said dividend, interest or redemption payment withheld presently by listed companies and registrar and transfer agents for want of nomination should be processed accordingly.
However, all new investors would be required to mandatorily provide nomination for demat accounts and mutual fund folios.
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