AMFI eases transfer of mutual fund units to nominees after death
The Association of Mutual Funds in India (AMFI) has revised its standard operating procedure to simplify the transfer of mutual fund units to nominees and legal heirs following the death of a unit holder. The changes, announced on Friday, aim to reduce hurdles that beneficiaries may face due to minor discrepancies such as address mismatches.
Under the revised guidelines, asset management companies (AMCs) are now instructed to rely on the latest available address details of the deceased unit holder, provided these are supported by relevant documents. This move is expected to expedite the claim process and ensure that families receive their entitled units without unnecessary delays.
AMFI emphasized that the simplification of the process aligns with its commitment to investor protection and ease of doing business. The new standard operating procedure is effective immediately and applies to all mutual fund schemes regulated by the Securities and Exchange Board of India (SEBI).
Industry experts have welcomed the move, noting that it addresses common grievances where beneficiaries faced difficulties due to outdated or mismatched records. The clarification also reduces the burden on AMCs to verify minor discrepancies that do not affect the identity of the claimant.
