New rules from March 1: Revised mutual fund, demat account nomination rules; Bima-ASBA in UPI; LPG, ATF prices

Many changes are coming into effect from March 1, 2025, that can have a major impact on citizens all over the country. From SEBI guidelines to LPG prices and from UPI transactions to aviation turbine fuel (ATF) prices, here is a list of all the changes that you need to look out for:

SEBI guidelines

As per the new guidelines by the Securities and Exchange Board of India (SEBI), several changes in the nomination process of mutual fund (MF) folios and demat accounts will be applicable from March 1 to increase transparency and reduce unclaimed assets.

“Upon implementation of this circular, existing investors shall be given an opportunity to revise their choice of nomination,” the markets regulator said in the circular dated January 10, 2025.

• Nomination process: Investors must provide nominee details including one personal identifier (PAN, driving license or Aadhaar’s last four digits), full contact details, relationship status and date of birth (if minor). Investors can name up to 10 nominees. However, a Power of Attorney (PoA) holder cannot make nominations on behalf of an investor.
• Transfer of assets: After an investor dies, nominees can choose to become joint holders or open individual accounts for the investor’s assets. For the transfer of assets, the documents required include a self-attested copy of the death certificate, updated KYC and clearance of any creditor claims. As per the revised rules, any other documents including affidavits, indemnities, undertakings, attestations, or notarizations from the nominee(s) are not required. Disputes, if any, must be resolved among the nominees and the claimants without involving the regulated entities.

• Nominees can transfer the assets to their legal heirs after submitting a declaration for the same. In the case of joint accounts, the surviving holder does not need to redo KYC but must submit the deceased’s death certificate.

• If some nominees fail to claim their share, that portion will remain in the account. The account will then be flagged for additional monitoring. Furthermore, investors can opt out of nomination through an online process using OTP verification or a video-recorded declaration.

• Investors who can contract but are incapacitated can authorise any one of the nominees, except for the minor nominees, to operate their accounts. The incapacitated investor can set limits on asset withdrawals and change the mandate whenever needed. This will not be applicable to individuals who are on a ventilator, coma, or unconscious. As per SEBI guidelines, an officer of the regulated entity will visit the incapacitated investor in person to determine if the investor can contract.

These new changes are brought by the market regulator to ensure a smoother nomination process and minimise disputes.

UPI new rule

UPI users can now pay for insurance premiums through blocked amounts. Insurance regulator IRDAI recently allowed a one-time mandate for blocking premium amounts through a unified payments interface (UPI) for life and health insurance policies.

Under the facility, known as Bima-ASBA (applications supported by blocked amount), a prospective policyholder can only pay an insurer after the insurance policy is issued. In ASBA, policyholders can block funds in their bank accounts for specific transactions ensuring timely payment. The insurance premium will only be released if the insurer accepts the proposal. In case of refusal, the amount will be unblocked. This facility will be available starting March 1, 2025.

Other changes

• New LPG cylinder prices will be announced on March 1, 2025, for both domestic and commercial LPG cylinders. LPG prices have a crucial impact on the middle class. On February 1, 2025, 19 kg commercial LPG cylinder prices were decreased by ₹7, while 14 kg domestic LPG cylinder prices remained unchanged.

• CNG, PNG and aviation turbine fuel (ATF) prices are reviewed and revised, if necessary, at the start of every month. These can affect vehicle owners, businesses and others. ATF prices were increased by 5.6% on February 1 to ₹95,533.72 per kilolitre, up ₹5,078.25 per kilolitre. Air travel becomes costlier when ATF prices rise.