Capital markets regulator SEBI has made the nomination of an individual optional for jointly held mutual fund accounts. SEBI has taken this decision to promote ease of doing business. Apart from this, SEBI has allowed ‘fund houses’ to have a single ‘fund manager’ to monitor commodity and foreign investments. This will reduce the cost of its management.
SEBI Implemented The Suggestions Received
SEBI took this step after a working group constituted it reviewed the mutual fund regulations and recommended measures to make business easier. A public discussion was held based on the SEBI Working Group’s recommendation to make nomination optional in joint mutual fund accounts and to allow ‘fund houses’ to have a single fund manager to oversee commodity and foreign investments. Option suggested.
Nominating Someone In A Joint Mutual Fund Folio Is Optional – SEBI
Securities and Exchange Board of India (SEBI) said in a circular that it has been decided that nominating someone for a joint mutual fund folio will be optional. Experts believe that relaxing the requirements for appointing someone will benefit joint folio holders. With this, the living member will be considered nominated, making the nomination process easier.
The last Date Is June 30, 2024
The regulator has fixed June 30, 2024, as the last Date for all existing mutual fund holders to nominate a person. If they fail to do so, their accounts will be ‘frozen’ for withdrawal. In a separate circular, the regulator informed about simplifying the existing provision regarding fund managers.
These Steps Will Reduce The Cost Of Fund Management
SEBI said appointing a dedicated fund manager would be optional for commodity-based funds like gold ETF (exchange-traded fund), silver ETF, and other funds participating in the commodity market. The appointment of a dedicated fund manager for foreign investment will also be optional. The purpose of appointing a fund manager for domestic and foreign/commodity funds is to reduce the cost of fund management.
