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Ch.9 · KYC and Folio Management · medium

Is nomination mandatory for individual mutual fund investors?

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EXPLANATION

SEBI mandated in 2022 that all individual investors must either register a nominee or explicitly opt-out of nomination by signing a declaration. Folios without this compliance may face restrictions on redemption.

A.No — it is entirely optional and has no regulatory consequence

B.Only mandatory for investors above 60 years of age

C.Yes — SEBI mandated nomination (or explicit opt-out) for all individual investor folios [✓ Correct]

D.Mandatory only for NRI investors

EXPLANATION

SEBI mandated in 2022 that all individual investors must either register a nominee or explicitly opt-out of nomination by signing a declaration. Folios without this compliance may face restrictions on redemption.

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