SEBI has revised the nomination framework for demat accounts and mutual fund folios to simplify investor onboarding and reduce unclaimed assets. Effective from 1 September 2026, nomination will be mandatory for all newly opened single-holder demat accounts and MF folios unless the investor expressly opts out, while it will remain optional for jointly held accounts. Investors may nominate up to three nominees, provide nominations through online or offline modes, and furnish only the nominee’s name and relationship as mandatory details, with other particulars remaining optional. The circular also removes the requirement for witness signatures in cases of physical nominations signed by wet signature (except where a thumb impression is used), permits unlimited changes or cancellation of nominations, and requires DPs and MF RTAs to periodically nudge investors without
nominations through bi-annual communications and platform pop-ups. The revised framework supersedes all earlier SEBI circulars on nomination and aims to enhance ease of investing and facilitate smoother transmission of securities upon the\ demise of an investor
