SEBI Draft: Simpler Nomination for Demat and MF Folios
Why in the news
After industry feedback on practical hurdles, SEBI suggested easing the nomination framework it introduced in January 2025.
Key facts
- Nomination becomes the default; those who decline must submit an opt-out declaration.
- It replaces OTP and video-based confirmation, judged inconvenient.
- If no share percentage is stated, assets are divided equally.
Old versus proposed
| Aspect | January 2025 | Proposal |
|---|---|---|
| Nominee cap | 10 | 4 |
| Mandatory details | Heavier process | Name and relationship |
| Optional details | – | Address, mobile, email, share |
Why the lower cap
- Complexity, and most investors name just one or two nominees.
Exam angle
- Numbers: 10 to 4.
- Default rule: equal split without percentages.