Regulatory would like to share two key regulatory updates upcoming on 1st October 2022 for your reference and action.
1) Investor Email and Mobile Number related:
The following changes will be effective 1st October 2022 with respect to the email ids and mobile numbers registered in a folio (based on recommendations in AMFI circular # 97/2021-22 dated 28th March 2022):
- Presence of Distributor or MF/RTA employee email ids/mobile numbers in folios – Email IDs or mobile number of Distributors or MF / RTA employees should not be registered against a folio except in cases where the Distributor/employee is one of the holders in the folio.
- Please review the email id and mobile number updated against your folio and if it is not available or does not belong to you, please update the folio with your own email id / mobile number.
- Multiple investors with the same email id/mobile number – An email id or a mobile phone number can be registered in folios of only one investor (PAN). If an email id or mobile that belongs to a family member needs to be registered, then “Family Declaration” needs to be submitted by the investor.
- Please review the contact details in your folio and if you have given a family member’s email id/ mobile number in your folio, please furnish a Family Declaration to retain these contact details. Alternatively, you can update your own email id/mobile number in the folio.
- Please note that these changes have already been implemented for new folios/investments created effective 1st May 2022 and will now be extended to existing folios with a cut-off date of 30th Sep 2022.
Regulatory request all investors to review and update their contact details as per steps mentioned above (if applicable) before 20th September 2022.
If there is no remedial action from your end for invalid email ids / mobile numbers referenced above, this could lead to their removal from your folio details (leading to potential inconvenience in carrying out transactions online and receiving communications).
2) Nomination for individuals:
For all new folios created from 1st October 2022, it will be mandatory for individual MF investors to either:
Declare nominee(s) for the folio or
Confirm he/she does not want to declare a nominee, through an explicit opt-out process.
Both nominee declaration and opt-out declaration can be submitted physically at any of our investor service centres or online through an OTP/e-Sign based authentication process.
The above changes, which will be effective for new folios from 1st October 2022. It will also be extended to all existing individual MF folios without a registered nominee with a cut-off date of 31st March 2023 (i.e., these investors will have to provide nominee declaration or opt out declaration before the cut-off date).