Shillong, March 27: Investors in mutual funds (MFs) will need to abide by some new rules that apply to mutual funds that take effect in April. Four of them are listed below:
Investors must declare a nominee by March 31 or opt out if they don’t want one. However the investments would be frozen if a person does not declare a nominee or not chooses one. Also, they won’t be permitted to seek redemption.
It should be noted that nominee information must be updated through brokerage for investments made through a demat account.
As per information, PAN will be inoperative if it is not linked with Aadhaar number by the end of this month. This in turn will have an effect on all procedures where PAN is necessary, making a customer’s Know Your Customer (KYC) profile “invalid”.
For the purpose of redeeming assets, the Securities and Exchange Board of India (SEBI) previously required a one-time password (OTP) delivered to a registered email address and phone number. This facility will be expanded to include making investments starting on the first of next month.
The KYC registration agencies (KRAs) are required to revalidate any KYCs used as officially valid papers (OVDs) prior to November 1 of last year before April 30. According to Sebi’s most recent circular, all customers who use Aadhaar as an OVD must validate their KYC information within 180 days beginning on November 1; the deadline has been extended to July 1, 2022.