Streamlining of Mutual Fund Process for Ease of Transmission Claim
SEBI has advised AMFI to simplify the standards for "Procedure to Claim Units/Proceeds upon death of a unit holder" as part of ongoing investor-friendly initiatives. This addresses operational challenges faced by kin of deceased investors during the mutual fund transmission process. AMFI has accordingly amended these standards to facilitate ease of transmission and align practices with regulatory objectives to safeguard investor interests.
The updated standards include specific investor-friendly measures: For resolution of address mismatches, Asset Management Companies (AMCs) may rely on the latest available address details when supported by relevant documents, even if there is a mismatch in the recorded address of the deceased unit holder. For harmonized name/signature mismatch framework, AMCs may adopt a framework similar to guidelines prescribed for RTAs in the SEBI Master Circular dated February 06, 2026. This framework specifies that in case of name mismatch, investors may submit self-certified documents such as Aadhaar or Passport, while for signature mismatch, RTAs may follow appropriate procedures based on the nature of the mismatch.
AMFI has been advised to provide training to all relevant entities on the transmission process to ensure practices across AMCs are aligned with regulatory guidelines. The announcement was made in Mumbai on July 17, 2026, under PR No. 41/2026.