The Securities and Exchange Board of India (SEBI) on July 17, 2026, advised the Association of Mutual Funds in India (AMFI) to simplify the standards governing the transmission of mutual fund units/proceeds upon the death of a unit holder. The revised framework aims to ease operational difficulties faced by legal heirs and nominees while ensuring uniform practices across Asset Management Companies (AMCs).
Under the updated standards, address mismatches may now be resolved by allowing AMCs to rely on the latest available address of the deceased investor, subject to supporting documents. For name and signature mismatches, AMCs may adopt a harmonized framework aligned with the SEBI Master Circular for Registrars to an Issue and Share Transfer Agents dated February 6, 2026. Investors may submit self-certified identity documents (such as Aadhaar or Passport) for name discrepancies, while signature mismatches will be handled through prescribed verification procedures.
Additionally, AMFI has been directed to provide training to all relevant entities involved in the transmission process to ensure consistent implementation of the revised standards across all mutual fund houses and strengthen investor protection.
[PR No.41/2026]
