The Securities and Exchange Board of India has issued revised nomination norms for demat accounts and mutual fund folios after stakeholder representations and public consultation feedback on its earlier framework. From September 1, 2026, single-holder accounts and folios opened on or after that date must include either a nomination or a formal opt-out declaration, while nomination remains optional for jointly held accounts and folios. All joint holders must consent to appoint or change a nominee, and the revised framework applies mutatis mutandis to existing accounts and folios as well. Investors may appoint up to three nominees and can submit, change or cancel nominations any number of times. Online nominations must be validated through a digital signature certificate, Aadhaar-based or other recognised e-sign, or two-factor authentication using an OTP sent to the registered mobile number and email address. Offline nominations require a wet signature and no witness, except where the holder uses a thumb impression, in which case two witnesses are required. Only the nominee’s name, relationship and a minor’s date of birth are mandatory fields. Contact details, percentage shares, identifiers and guardian details for minors are optional. Where no percentage split is given, holdings will be divided equally and any odd lot will go to the first nominee. Depository participants and mutual fund RTAs must acknowledge every nomination request or change, reflect either nominee names or a yes or no nomination indicator in periodic statements according to the investor’s choice, and send twice-yearly email and SMS nudges plus first-log-in pop-up reminders to investors without nominations, including those who opted out. Regulated entities must upgrade their systems and depositories must amend relevant bye-laws, rules and regulations. The circular supersedes earlier SEBI nomination circulars from the date of issue, while the revised norms take effect on September 1, 2026.
Securities & Exchange Board of India2026-05-29
Securities and Exchange Board of India revises nomination rules for demat accounts and mutual fund folios with mandatory choice for single holders from September 1 2026
The Securities and Exchange Board of India has revised nomination norms for demat accounts and mutual fund folios, requiring single-holder accounts opened on or after September 1, 2026 to include either a nomination or a formal opt-out, while keeping nomination optional for joint holdings. The framework standardises online and offline nomination processes, permits up to three nominees with flexible changes, and applies to existing accounts and folios. Depository participants and mutual fund registrars and transfer agents must update systems, acknowledge nomination requests, disclose nomination status in statements, and send periodic reminders to investors without nominations.