Investors of international funds or any other mutual fund schemes are required to make sure that their contact details such as email IDs and mobile numbers are updated in their fund folios. Further, they also need to make sure the nomination details are updated in the folios. Mutual fund registrars are sending a communication to the unitholders to ensure that effective from 1st October 2022, the email ids and mobile numbers are registered in a folio along with proper nomination details.
The purpose is to make sure the email and mobile number in the folio are that of the unitholder and not that of the distributor or any intermediary. In March 2022, the Association of Mutual Funds in India (Amfi) published the best practices recommendations for validating the email address and mobile numbers of MF unitholders. The authority advised RTAs (Registrar and Transfer agents), who assist in record maintenance for MF businesses, to carry out the fundamental validation check (10-digit phone number, email id with suitable domain), which ensures the right contact details of unitholders.
Except in situations when the Distributor or Registrar employee is one of the holders in the folio, email IDs or mobile numbers of Distributors or MF/RTA personnel should not be registered against a folio.
If the email address and mobile number is shown against your folio are incorrect or do not belong to you, then you need to change them in the folio with your own email address and mobile number.
An email address or mobile phone number may only be registered on one investor’s folio (PAN). If an investor has to record a family member’s email address or phone number, they need to fill out a “Family Declaration.”
If you have specified a relative’s email address or mobile number, still you need to submit a Family Declaration so that the Registrar can retain that information on file. Additionally, you can modify your own email or phone number in the folio.
These changes have already been implemented for new folios/investments created effective 1st May 2022 and according to Registrar’s communication, it will now be extended to existing folios with a cut-off date of 30th Sep 2022.
Failing to do may lead to the removal of the invalid contact details from the investor’s folio by 30th September 2022 leading to potential inconvenience in conducting transactions online and receiving communications.
Nomination for individuals
For all new folios created from October 1, 2022, it will be mandatory for individual MF investors to either declare nominee(s) for the folio or confirm he/she does not want to declare a nominee, through an explicit opt-out process.
Both nominee declaration and opt-out declaration can be submitted physically or online through an OTP/e-Sign-based authentication process.
The above changes will be effective for new folios from 1st October 2022. It will also be extended to all existing individual MF folios without a registered nominee with a cut-off date of 31st March 2023 (i.e., these investors will have to provide a nominee declaration or opt-out declaration before the cut-off date).