Mumbai, India: The Securities and Exchange Board of India (SEBI) has directed the Association of Mutual Funds in India (AMFI) to simplify the standards governing the transmission of mutual fund units and proceeds after the death of a unit holder. The revised framework is intended to reduce procedural hurdles faced by the families of deceased investors during the claims process.
According to SEBI, AMFI has amended its standards on the “Procedure to Claim Units/Proceeds upon death of a unit holder” as part of the regulator’s ongoing investor-friendly initiatives. The updated norms are designed to streamline the transmission process while ensuring consistency with regulatory safeguards for investors.
One of the key changes addresses cases where the recorded address of the deceased investor differs from the address provided during the claim. Under the revised standards, Asset Management Companies (AMCs) may rely on the latest available address, provided it is supported by appropriate documentary evidence, helping reduce delays caused by address mismatches.
The revised framework also introduces a harmonized approach for resolving discrepancies related to the name or signature of the deceased unit holder. In cases involving name mismatches, investors or claimants may submit self-certified identity documents such as an Aadhaar card or passport. For signature mismatches, registrars and transfer agents (RTAs) may follow the procedures outlined in SEBI’s Master Circular for Registrars to an Issue and Share Transfer Agents dated February 6, 2026.
SEBI said the changes are expected to facilitate smoother transmission of mutual fund investments while reducing operational challenges for nominees and legal heirs. The regulator has also advised AMFI to conduct training programmes for all relevant entities involved in the transmission process to ensure uniform implementation of the revised standards across Asset Management Companies.
The updated measures form part of SEBI’s broader efforts to simplify investor-facing procedures and improve the efficiency of mutual fund services, particularly in situations requiring the transfer of investments following the death of an investor.
Source: This article is based on an official press release issued by SEBI
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