AMFI streamlines process for transmitting mutual fund units after investor's death

AMFI via X

The Association of Mutual Funds in India (Amfi) on Friday said it has streamlined the process for transmitting mutual fund units after an investor's death by relaxing norms related to address, name and signature mismatches, with the changes taking immediate effect.

The industry body said the revised Standard Operating Procedure (SOP) is aimed at reducing operational hurdles and enabling nominees of deceased unit holders to claim mutual fund units or proceeds more smoothly.

Under the revised framework, Asset Management Companies (AMCs) have been advised to rely on the latest available address of the deceased unit holder, provided it is supported by relevant documents, in cases where there is a mismatch in the recorded address.

Amfi has also introduced a harmonised approach for resolving name and signature discrepancies. AMCs may now follow the framework prescribed for Registrar and Transfer Agents (RTAs) for handling minor and major name and signature mismatches.

The changes come amid reports highlighting the difficulties faced by nominees and legal heirs in completing transmission formalities due to minor documentation inconsistencies.

"The updated SOP guidelines have been communicated to all member AMCs and take effect immediately," the industry body said in a statement.

To ensure uniform implementation across the industry, the association said it will facilitate training initiatives through AMCs to promote consistent application of the revised procedures and adherence to regulatory guidelines.

Amfi said the changes are in line with regulatory efforts to protect investor interests and make the claims process less cumbersome for bereaved families.

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