If you invest in shares or mutual funds, adding a nominee to your account may soon become much simpler.
The Securities and Exchange Board of India (SEBI) has announced new rules that make the nomination process easier for investors. The changes will apply to demat accounts and mutual fund investments from 1 September 2026.
SEBI introduced the revised framework after receiving feedback from investors and industry participants on the existing nomination process.
A nominee is the person who can claim your investments after your death. Having a nominee in place can help your family access your investments more smoothly and avoid delays.
Under the new rules, anyone opening a new individual demat account or mutual fund folio will generally be required to provide nominee details. However, if you do not wish to appoint a nominee you can still choose to opt out by submitting a declaration.
SEBI has also made the process more flexible. You can now nominate up to three people for their investments. If more than one nominee is registered, the investments can be divided among them according to your instructions.
The regulator has reduced the amount of information you need to provide. Only the nominee’s name and relationship with you will be mandatory. Other details, such as contact information and identification details, can be provided voluntarily.
You will be able to submit nomination requests online as well as offline. Online submissions can be completed using recognised digital verification methods, while offline forms will no longer require witness signatures in most cases.
Another important change is that you will be able to add, change or remove nominees whenever you want. There will be no limit on the number of times nomination details can be updated.
For accounts that do not have a nominee, depository participants and mutual fund registrars will send reminders through SMS and email. Online investment platforms will also display messages explaining the benefits of nomination.
SEBI said these changes are intended to make investing more convenient and help reduce the number of unclaimed investments that remain unclaimed after an investor’s death.
The revised rules will apply to both new and existing demat accounts and mutual fund investments.
