In the lack of nomination, demat accounts and MF portfolios will not be frozen.

The Securities and Exchange Board of India (SEBI) announced that demat accounts and mutual fund portfolios will remain accessible even if nomination details are not provided, to assist investors and simplify compliance. The market regulator had established June 30 as the final date for individual mutual fund holders to either select their nominee or decline the nomination process. Failure to comply would lead to accounts being frozen, blocking any withdrawals. A new circular on Monday canceled this rule for current investors.

Sebi stated that investors who have securities in physical form can receive payments like dividends, interest, or redemption payments, and can ask for services from RTAs without needing to submit a 'choice of nomination'.

Nevertheless, new investors are required to choose a nominee, except in cases of jointly held demat accounts and mutual fund portfolios. Sebi has requested AMCs and RTAs to promote updating nomination details for Demat account holders and mutual fund unit holders respectively. To achieve this, it is necessary to send emails and text messages every two weeks to investors who haven't chosen yet, starting on October 1, 2024.

Sebi has also specified a procedure for making nominations and withdrawing nominations for both demat accounts and mutual fund folios. The details for choosing to be nominated or not are outlined in Annexure-A and Annexure-B of the circular.

Regardless of any updates from Sebi regarding deadlines or account status, it is still important to appoint a nominee. Including a beneficiary guarantees a seamless transfer of your assets to your family members when you are no longer present. If there is no designated recipient, legal obstacles could prevent beneficiaries from receiving the funds, resulting in some cases where the money goes unclaimed.