- SEBI introduced measures to simplify mutual fund unit transmission after investor death
- The new framework standardises documentation and speeds up claim settlements
- Asset management firms will adopt a uniform process for transmission requests
The Securities and Exchange Board of India has introduced measures to simplify the process for transmitting mutual fund units after the death of an investor, in a move aimed at reducing delays and making it easier for nominees and legal heirs to access investments.
The regulator said the revised framework, implemented through the Association of Mutual Funds in India, streamlines the procedure for claiming mutual fund units or redemption proceeds following the death of a unit holder.
The changes are intended to eliminate operational bottlenecks, standardise documentation requirements and ensure a smoother claim settlement process across the mutual fund industry.
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Under the revised process, asset management companies will follow a more uniform approach while processing transmission requests, reducing the compliance burden on nominees and helping speed up settlements.
The move comes as part of SEBI's broader push to improve investor services and make mutual fund operations more efficient.
Easier transmission of investments has been a long-standing demand from investors and the industry, particularly in cases where families face lengthy documentation and procedural delays after the death of an investor.
The regulator said the changes are aimed at ensuring that rightful claimants can access mutual fund holdings with minimal friction while maintaining necessary safeguards against fraudulent claims.
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