SEBI has now directed AMFI to simplify the transmission process by easing the handling of address, name and signature discrepancies while continuing to protect investor interests.
Losing a loved one is challenging, and completing financial formalities can add to the burden. Even small differences in records, such as an old address or a variation in a name or signature, can delay the transfer of mutual fund units or redemption proceeds.
The Securities and Exchange Board of India (SEBI) has advised the Association of Mutual Funds in India (AMFI) to simplify the standards for claiming mutual fund units or proceeds after the death of a unit holder. AMFI has amended its standards accordingly.
Key changes
The revised standards introduce measures intended to make the transmission process smoother for claimants.
- Address mismatches: If the recorded address of the deceased investor differs from the latest available address, Asset Management Companies (AMCs) may rely on the updated address, provided it is supported by relevant documents.
- Name mismatches: If there is a difference in the investor’s name, self-certified documents such as Aadhaar or Passport may be submitted.
- Signature mismatches: Registrars and Transfer Agents (RTAs) may follow appropriate procedures depending on the nature of the signature mismatch, in line with SEBI’s Master Circular dated 6 February 2026.
What does this mean for you?
If you are handling the transmission of mutual fund investments after the death of a unit holder, these changes are intended to reduce delays caused by genuine documentation mismatches. However, supporting documents will still be required.
To ensure the revised standards are implemented consistently, SEBI has also advised AMFI to provide training to all relevant entities involved in the transmission process.
Summary
SEBI has simplified the mutual fund transmission process by easing the handling of address, name and signature mismatches. If you need to claim a deceased family member’s mutual fund investments, the revised standards are intended to reduce documentation-related delays while maintaining investor protection..
