Nomination rules for demat accounts, mutual funds to change from September 1, 2026. What to know

The Securities and Exchange Board of India (SEBI) has modified the norms for nomination in demat accounts and mutual fund folios. The revised rules will come into effect from September 1, 2026

In a circular dated May 29, 2026, the regulator said the modification will “enhance the ease of investor onboarding and ease the nomination process.”

This article highlights all the key details investors should know from the regulator’s modified nomination norms.

Nomination is mandatory for all single accounts and folios. However, investors can avoid nomination by filling out the opt-out form.

Nomination will be optional for jointly held demat accounts/folios.

The consent of all joint-holders will be required for providing or changing a nominee.

An investor can provide up to 3 nominees.

No. In case of the death of an investor who has nominated multiple persons, the nominees may open separate demat accounts or folios for their respective holdings. They can also choose to continue in the same account or folio.

The following details are mandatory:

• Name of nominee

• Nature of the relationship of the nominee with the investor.

• Date of birth is mandatory (if the nominee is a minor)

The following details are optional:

• Contact details of the nominee, like mobile number, e-mail address

• Percentage share of each nominee, KYC/identifier of the nominee

Details of the guardian, if the nominee(s) is/are minor/s.

In such cases, the assets in the account/folio will be divided among the nominees equally. However, any odd lot after division will be transferred to the first nominee mentioned in the form.

Yes. SEBI says investors can provide, change, or cancel nominations any number of times.

Regulated entities are required to provide an acknowledgement to the investor for each and every instance of nomination / subsequent change.

For such accounts, Depository Participants/ Mutual Fund RTAs are required to send bi-annual messages by way of emails and SMS, nudging and guiding them to provide nomination. They should also display a message on the benefits of nomination as pop-ups on their mobile apps and online platforms.