SEBI Simplifies Mutual Fund Transmission Process For Legal Heirs, Nominees

The Securities and Exchange Board of India (SEBI) has announced investor-friendly measures to simplify the process of transferring mutual fund investments to legal heirs or nominees after the death of a unit holder.

In a press release issued on Friday, SEBI said it had advised the Association of Mutual Funds in India (AMFI) to further simplify the standards governing the procedure for claiming units or proceeds upon the death of a unit holder. Following SEBI's advice, AMFI amended the standards.

According to SEBI, the revised standards are intended to make the transmission process easier while ensuring that industry practices remain aligned with the objective of protecting investors' interests.

One of the key changes relates to resolving address mismatches. SEBI said that where the address recorded in the mutual fund records differs from the latest address of the deceased unit holder, Asset Management Companies (AMCs) may rely on the latest available address. This will be subject to the submission of the required supporting documents.

The revised standards also introduce a harmonised framework for resolving name and signature mismatches. Under this framework, AMCs may adopt the guidelines prescribed for Registrars and Transfer Agents (RTAs) under SEBI's Master Circular dated February 6, 2026.

Under the guidelines, name mismatches may be resolved by submitting self-certified documents such as an Aadhaar card or passport. In cases involving signature mismatches, RTAs may follow the applicable procedure depending on the nature of the discrepancy.

SEBI has also advised AMFI to train all stakeholders involved in the transmission process. The regulator said this would help ensure that the revised standards are implemented uniformly across all AMCs.