For ease of compliance and investor convenience, SEBI, vide circular dated June 10, 2024, has prescribed the following:
- non-submission of ‘choice of nomination' for demat accounts and MF folios would not result in freezing of such demat accounts or MF folios. However, new investors/unitholders must continue to provide ‘choice of nomination' for demat accounts/MF folios;
- security holders holding securities in physical form would be eligible for receipt of any payment including dividend, interest or redemption payment as well as to lodge grievance or avail any service request from the Registrar and Transfer Agents (“RTA”) even if 'choice of nomination' is not submitted by these security holders; and
- payments including dividend, interest or redemption payment withheld presently by the listed companies/RTAs, only for want of ‘choice of nomination' must be processed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
