SEBI eases mutual fund nomination norms and allows a single manager for commodity funds.
Capital market regulator SEBI has simplified mutual fund nomination rules and permitted a single fund manager to oversee commodity and foreign investments from May 1. The decision was based on the recommendations of a working group constituted to promote ease of doing business in the MF industry. After public consultation, the group evaluated existing norms and proposed reforms.
As per SEBI’s circular, nomination for jointly held MF folios will now be optional. Experts say this streamlines transmission and reduces hassles for surviving holders.
SEBI has set June 2024 as the deadline for existing individual investors to nominate or opt out. After that, non-compliant accounts will be frozen for withdrawals.
In a separate circular, the regulator allowed the optional appointment of dedicated fund managers for commodity-based funds.
A single manager can oversee both domestic and overseas commodity funds, intended to lower costs. This applies to gold, silver, and other commodities investing funds.
The efforts aim to rationalize regulatory requirements and facilitate investment processes. Observers say the moves will promote MF penetration by enhancing user-friendliness.
SEBI will continuously evaluate market feedback on policy interventions affecting retail participation.
