SEBI simplifies nomination process for demat accounts and mutual funds

New Delhi ( Raghwendra Pratap Singh) : Capital markets regulator, Securities and Exchange Board of India, has eased nomination norms for demat accounts and mutual fund folios, simplifying the process for investors while making nomination the default option for all new single-holder accounts opened from September 1, 2026.

In a circular issued on Friday, the regulator said investors opening single-holder demat accounts or mutual fund folios will have to mandatorily provide nomination details unless they specifically choose to opt out through a declaration form. Joint accounts, however, will continue to have optional nomination facilities.

The move comes after the regulator received representations from market participants citing operational challenges in implementing earlier nomination rules issued in January 2025.