Mutual Funds nomination deadline ends on Sept 30; over 25 lakh PAN holders yet to update details

The deadline to update the nomination for your mutual fund investment ends on September 30 and many investors are yet to complete this task. As per the records of the registrar and transfer agent (RTA) CAMS, there are as many as 25 lakh PAN holders that are yet to update their nomination details.

If the nomination details are not updated on time, the Mutual Fund portfolios would get frozen for all debit activities. The user will not be allowed to redeem or withdraw from any of these investments. However investment can continue to happen in the existing portfolio.

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The SEBI had extended the deadline to September 30 after users found it difficult to update the nomination by the earlier said March 30, 2023.

Meanwhile, many mutual fund distributors highlight several hurdles faced by investors in updating their nomination. Joint folios owned by more than one individual have faced difficulties in updating their nomination details online.

Irrespective of the mode through which the details are updated, for Joint portfolios consent of all joint holders is required. For updating online, OTP authentication is required.

So, unless the folio has the contact details (email ID and mobile) of all the holders, or at least the KYC records with the RTAs have the contact details of the joint holder (that is, the second holder in case of two holders), this cannot be done online.

Meanwhile, new investors can update nomination online when they first register on MFU. But, as of now, existing users of MFU can update their nomination only by submitting a physical nomination form.