SEBI Proposes Simplified Nomination Norms for Demat and Mutual Fund Folios

SEBI has proposed making 'Nomination' the default option for all new demat and mutual fund accounts to reduce the accumulation of unclaimed assets.
The number of nominees per account will be capped at four, down from the earlier proposed ten, to ensure operational feasibility.
If multiple nominees are assigned without specific shares, SEBI clarified that assets would be divided equally among them by default.
Mandatory nominee information will now be restricted to name and relationship; other details like contact info and percentage share will be optional.
Exam Perspective: Aligning nomination practices with banking norms simplifies investor onboarding and reduces the compliance burden on financial institutions.