The Securities and Exchange Board of India (Sebi) has announced the introduction of uniform nomination methods and similar rules for demat account and mutual fund investments. The major goal of Sebi's effort is to expedite the asset transfer procedure to nominees, hence reducing red tape. 

Nominees will now be permitted to handle accounts on behalf of investors who are unable to do so themselves, with safeguards in place to ensure investor welfare.

Top points

> The maximum number of candidates has been increased from three to 10. This change gives investors greater freedom in designating numerous beneficiaries.

> Furthermore, Sebi has implemented laws that allow nominees to act on behalf of incapacitated investors, with appropriate risk management methods in place to safeguard the interests of all stakeholders.

> Nomination is optional for joint demat accounts and mutual fund portfolios. Opting out of single accounts will require confirmation. Investors may change nominations without regard to the number of updates.

> SEBI is focusing on expediting the transmission procedure to lessen the bureaucratic load on nominees. This will streamline and accelerate the process of inheriting assets from dead investors.
> To improve the accuracy and openness of the nomination process, candidates will now be required to give unique identifiers such as PAN, passport numbers, or Aadhaar.

> Nominees will act as trustees for the deceased's lawful beneficiaries. It is vital to highlight that the legal beneficiaries of a deceased nominee would have no rights to the assets. In the case of any pledges, creditors' claims take precedence over asset transfers.

> SEBI has clarified the process for transferring Hindu Undivided Family (HUF) accounts, especially in the case of the Karta's death. The concept of survivorship will now apply to joint interests under the amended legislation.

> According to the earlier circular, if a demat account or mutual fund scheme units are jointly owned by two or more persons, the rights, title, and interest will be transferred to the remaining joint holders/owners following the death of one of them.