Markets regulator SEBI has extended the eligibility period for mutual fund accountholders until January 1 to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their folios will be frozen.
In other news, current mutual fundholders were required to provide a choice of nominations on or before September 30.
The move aims to aid investors secure their assets and pass them on to their legal heirs.
In a circular released by SEBI, the central bank said: ''Sebi has done a good job with my money and I have been able to take advantage of it''.
SEBI further asked asset management companies and RTAs to encourage the unit holder to fulfill the requirement for nomination/opting out of the nomination by sending a communication to all such unit holders that are not in compliance with the requirement of nomination by way of emails and SMS.
The deadline was extended several times.
Market experts say that in the past, many mutual fund folios have been opened without nominating anyone to whom the assets should be transmitted in case something happens to the account holders.
The rightful heirs faced difficulties in obtaining the assets transferred to them due to the headaches of different types of documentation requirements.
On Tuesday, the agency extended the eligibility criteria for demat accountholders by three months to December-end, allowing them to provide a choice of nomination or formally opt out of nomination through a declaration form.
Also, SEBI has made the submission of 'choice of nomination' for trading accounts a voluntary option for ease of doing business as a move towards ease of doing business.