The Securities and Exchange Board of India (SEBI) has taken steps to simplify the process of claiming mutual fund units or proceeds after the death of an investor. The move aims to reduce difficulties faced by nominees and legal heirs during the transmission process.
Under the updated standards, address mismatches in the records of a deceased investor can be resolved by allowing Asset Management Companies (AMCs) to rely on the latest available address, subject to the required documents.
SEBI has also introduced a more harmonised approach for name and signature mismatches. For name discrepancies, nominees or legal heirs may submit appropriate self-certified documents, such as Aadhaar or a passport, as applicable.
If a mutual fund investor passes away, nominees or legal heirs may find it easier to claim the investment when there are minor differences in address, name or signature records.
SEBI has also advised the Association of Mutual Funds in India (AMFI) to train relevant entities so that transmission procedures are followed more consistently across mutual fund houses.
The changes are intended to make the claim process more investor-friendly, consistent and easier to navigate during an already difficult time.