Sebi proposes easing nomination norms for demat accounts, MF folios

In a consultation paper, Sebi suggested making nomination the default option for new accounts, requiring investors to explicitly opt out if they choose not to appoint a nominee.

It also proposed streamlining nominee details by making only the name and relationship mandatory, while keeping other fields optional. Further, the regulator recommended capping the number of nominees at four and routing access for incapacitated investors through a power of attorney mechanism, instead of granting such access to nominees.

The proposals come in the wake of operational challenges flagged under the existing framework. Sebi has invited public comments on the consultation paper until April 7.