SEBI has extended the timelines to comply with the nomination guidelines by six months i.e. from March 31, 2023 to September 30, 2023.
All existing folios without a nomination will now have to opt for nomination or opt out of the nomination by September, 2023. Failure to comply will result in the freezing of folios for redemption.
“Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead of March 31, 2023”, said SEBI.
It also directed AMCs and RTAs to send fortnightly emails and SMSes to non-compliant folios along with guidance to complete the same.
