Sebi Extends Nomination Framework Timeline Amid Operational Challenges

The Securities and Exchange Board of India (Sebi) has announced an extension for the implementation of the second and third phases of its new nomination framework in the securities market, much to the relief of sector stakeholders facing operational difficulties.

Originally, Phase II was to take effect on June 1, but has been pushed to August 8, while the Phase III deadline has been rescheduled from September 1 to December 15. This decision followed requests from securities depositories and industry associations, highlighting the need for additional time for necessary system updates and compliance.

Initially introduced in January, the framework seeks to overhaul the nomination process for mutual fund folios and demat accounts, aiming to enhance transparency and prevent unclaimed assets. Key changes include the rule of survivorship, mandatory nomination for single holdings, and more robust nomination verification measures. Sebi's extensions signify a cautious, phased approach to significant regulatory changes.

(With inputs from agencies.)