SEBI Proposes Changes to Nomination Norms for Demat and Mutual Fund Accounts

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing changes to nomination norms for demat accounts and mutual fund folios to simplify investor onboarding and align with banking norms. Key proposals include making nomination the default option with an opt-out choice, limiting nominees to four, and requiring only the nominee's name and relationship as mandatory details. SEBI also suggests using the Power of Attorney mechanism for incapacitated investors instead of granting nominees account access. Public comments are invited until April 7.