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Over the last few days, many MFDs have been struggling to update nomination of their clients online.
MFDs complained that whenever their clients key in PAN during online nomination process, the system shows error. Even if the system accepts their PAN, they could not complete the process due to another system error.
We reach out to CAMS and KFintech to find out the reasons. Both the RTAs have confirmed that investors first need to update their mobile number and email id with RTAs before updating their nomination. Please note that nomination process requires OTP authentication, which requires valid mobile number and email id of investors.
Both CAMS and KFintech have launched their respective self-declaration forms through which MFDs can help their clients update email ID and phone number across all fund houses. Your clients can visit CAMS and KFintech to update their mobile number and email id online.
Also, RTAs have clarified that investors will have to update mobile number and email ID of all unitholders in joint folios. The system will show error until mobile number and email ID of all holders remain unverified, clarified RTAs.
RTAs claim that the system updates mobile number and email ID instantly. This means investors can update their nomination simultaneously.
Mutual fund investors will have to compulsorily give a declaration if they opt in or opt out of nomination. You clients can give such a declaration online by visiting CAMS and KFintech.
Both changes have to be done by March 31, 2023; failure to comply with these norms will cause disruption in your business.
