INVC NEWS
Mumbai : SEBI has made it optional to nominate an individual for jointly held mutual fund accounts to promote ease of doing business. Also, SEBI has allowed ‘fund houses’ to have only one ‘fund manager’ to monitor commodity and foreign investments. This will reduce the cost of its management.
SEBI’s move comes after a working group constituted by it reviewed mutual fund regulations and recommended measures to ease doing business. Public consultation was conducted based on the recommendations of the Working Group, which suggested the option of making nomination of a nominee in joint mutual fund accounts optional and allowing ‘fund houses’ to have a single fund manager to oversee commodity and foreign investments. Went.
Securities and Exchange Board of India (SEBI) said, accordingly, it has been decided that nominating someone in a joint mutual fund folio will be optional. Market experts believe that relaxation in the requirements for nominating someone for joint holders will be beneficial. With this, the living member will be considered nominated which will ease the process of nomination. The regulator has fixed June 30, 2024 as the last date for all existing individual mutual fund holders to nominate an individual. If they fail to comply, their accounts will be ‘frozen’ for withdrawals.
SEBI said the appointment of a dedicated fund manager for commodity-based funds such as gold ETFs (exchange traded funds), silver ETFs and other funds participating in the commodity market will be optional. Also, appointment of a dedicated fund manager for making foreign investments will also be optional.
