SEBI Proposes Revised Nomination Norms for Demat Accounts and Mutual Funds

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing revisions to nomination norms for demat accounts and mutual fund folios to simplify investor onboarding and reduce compliance challenges. Key proposals include making nomination the default option with an opt-out choice, limiting nominees to four, requiring minimal nominee details, and routing access for incapacitated investors through a power of attorney instead of nominees. SEBI seeks public feedback by April 7, citing operational difficulties and risks under current rules.