Mutual fund investors can name up to three nominees under SEBI's modified nomination norms effective from 1 September 2026. A new single holder folio requires nomination unless the investor makes the prescribed opt out declaration. Nomination is optional for jointly held folios, but all joint holders must consent to adding or changing a nominee, regardless of how the folio is operated.
| Point | Modified norm |
|---|---|
| Maximum nominees | Three |
| Ways to submit | Online or offline |
| Mandatory nominee details | Name and relationship; date of birth for a minor |
| Share left unspecified | Equal allocation, with an odd lot going to the first nominee |
| Effective date | 1 September 2026 |
These rules are in SEBI's circular dated 29 May 2026. The linked eight page official PDF, read on 1 November 2026, specifies the forms, validation methods and obligations of regulated entities. The rules also extend to existing accounts and folios as applicable.
Mutual fund nomination form: which details are mandatory?
The nominee's name and relationship to the investor are mandatory. A minor nominee's date of birth is also mandatory. The circular places contact details, percentage shares, the nominee's KYC or identifier information, and guardian details for a minor in the optional information category. The form must make those fields available even when an investor chooses to leave optional information blank.
With several nominees, leaving percentage shares unspecified produces equal allocation. Any odd lot after division goes to the first nominee listed. This is different from assuming that the first nominee automatically receives the whole holding. If allocation matters to the investor, the form's share fields are the place where that choice is recorded.
How to add or change a mutual fund nominee
The circular allows online and offline nomination. Online validation can use a digital signature certificate, recognised electronic signing methods, or two factor authentication with an OTP sent to the investor's registered mobile number and email address as one factor. The online route must follow the specified form format.
For a physical nomination, the account or folio holder signs the form. A witness signature is not required for an ordinary wet signature. When the holder uses a thumb impression instead, two people must witness it and their names and addresses must be recorded. The distinction prevents a requirement meant for thumb impressions from being applied to every signed form.
Investors may make, change or cancel nominations any number of times. The regulated entity must acknowledge each nomination and subsequent change. A practical way to check completion is to retain that acknowledgement and compare it with the next account or holding statement. The rules require the statement to show either nominee names or whether nomination exists, according to the investor's chosen disclosure option.
Can investors opt out of mutual fund nomination?
Yes. The prescribed declaration can be submitted offline, or the investor can choose the online opt out option and agree to the displayed declaration. The declaration explains that nomination helps identify the person for transfer after death and can make transmission to legal heirs smoother. Without it, additional legal or court documents may be needed, delaying the process.
For accounts without nomination, including opt outs, the circular requires half yearly email and SMS reminders and a nomination benefit message on the first login of the day. Investors who have already provided nomination should not receive those nudges. A reminder therefore needs to be read alongside the recorded nomination status.
For other finance questions, see our Mutual fund NAV meaning: the formula and the low-price myth, SIP calculator formula with example: why payment timing changes the result, and Deposit insurance cover of Rs 5 lakh: how DICGC counts your bank accounts. Those explain different products and calculations; they do not determine nomination eligibility.
