SEBI defers nomination framework phase 3; new date pending

• SEBI has deferred the implementation of the third phase of its nomination framework for the securities market, originally set for December 15.
• The deferment is due to operational challenges reported by depositories and other stakeholders; a new implementation date will be announced later.
• The framework aims to revamp nomination processes for mutual fund folios and demat accounts to enhance transparency and reduce unclaimed assets.
• Key features include asset transfer to surviving joint holders, mandatory nomination for single holdings, and allowing up to 10 nominees with percentage allocations.
• Nominees will act as trustees for the legal heirs of the account holder, without direct inheritance rights for heirs of a predeceased nominee.

Why It Matters: SEBI delays new investment nomination rules, impacting how your assets are transferred.