SEBI simplified mutual fund transmission rules, allowing AMCs to rely on latest address details and harmonising name/signature verification for claimants.
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India's market regulator has simplified the process for nominees and legal heirs to claim mutual fund units after an investor's death, addressing a long-standing source of friction for families.
In a July 17 press release, the Securities and Exchange Board of India said it directed the Association of Mutual Funds in India to revise the standards governing the "Procedure to Claim Units / Proceeds upon death of a unit holder." The changes take effect immediately.
The biggest change targets address mismatches. Previously, if the address on a mutual fund folio did not match the one on supporting documents submitted by a claimant, asset management companies could delay the request pending additional paperwork. Under the new framework, AMCs may rely on the latest available address details as long as they are backed by relevant documentary evidence.
"In cases where there is a mismatch in the recorded address of the deceased unit holder, Asset Management Companies may rely on the latest available address details, provided they are supported by relevant documents," the release said.
SEBI also introduced a harmonised approach for name and signature mismatches, another common cause of delays. AMCs may now follow procedures similar to those prescribed for registrar and transfer agents under SEBI's Master Circular dated February 6, 2026. For name mismatches, claimants can submit self-certified documents such as Aadhaar or a passport. For signature mismatches, RTAs may follow procedures based on the nature of the discrepancy.
AMFI has been asked to train all relevant entities on the transmission process so practices across AMCs align with the new guidelines.
"Transmission of units is a process whereby units held by a deceased unitholder are transferred either to the nominee or to the legal heirs of the deceased unitholder," AMFI said in the release.
The changes aim to make the claims process faster and less stressful for families, who often face delays due to differences in addresses, spelling variations in names, or signature mismatches between records and identity documents.
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