Regulatory Changes as per SEBI - Guardian Relationship and Nomination Standardisation - 2024

According to latest SEBI Mutual Fund Circulars regarding the upcoming changes in regulations concerning Guardian Relationship and Nomination standardisation, all investors must comply with the following regulations before the 14th November 2024 deadline to avoid disruption in transactions:

Key Changes:

1. Guardian Relationship:

   For minor accounts, the system now mandates that the investor clearly specify the relationship between the minor and the guardian managing the account. Investor needs to select from the following relations:

   1. Father

   2. Mother

   3. Court appointed legal guardian

2. Nomination Standardisation:

   BSE has updated the some nominee relationships. For example, if the relationship was previously recorded as ‘Sibling,’ the system now requires you to specify either Brother or Sister.
   

Impact:

Any transactions that do not comply with these new standards will be rejected from 14th November 2024. This means that if you haven't updated the nominee and guardian details in existing folios, your clients' transactions will not be processed and the transactions in new folios cannot be initiated.

Immediate Action Required

The list of affected clients is available at Reports-> Regulatory Reports -> Nominee Standardisation and Guardian Relationship

Here is the link: https://partner.assetplus.in/home/reports/business/nominee_regulatory

Please reach out to clients and inform them to carry out the following changes:

1. Update Nominee Details for Sibling Relationships:

   If the client has recorded any nominee relationship as ‘Sibling,’ please tell them to revise the details to specify Brother or Sister.

2. Provide Correct Guardian Details for Minors:

   For accounts set up on behalf of minors, ensure the guardian’s relationship with the minor is clearly stated.