SEBI has issued a directive making the nomination process mandatory from September 2026, to minimize disputes and expedite the process of asset transmission to protect investors’ interests.
SEBI's New Directive on Nomination
The Securities and Exchange Board of India (SEBI) has announced a new regulation requiring all investors to provide a nomination for their investments starting from September 2026. This step is aimed at reducing disputes related to unclaimed investments and ensuring smooth asset transmission in case of the investor's demise.
In its circular, SEBI outlined that the absence of a nomination can lead to significant delays and legal complications, which are burdensome for heirs and beneficiaries. By mandating this process, SEBI intends to simplify the transition of assets and enhance investor protection.
This regulation will have far-reaching implications for investors and financial institutions alike, prompting both to familiarize themselves with the new requirements and adapt their processes accordingly to ensure compliance.
Citations
- SEBI (2026) SEBI Circular 1
