Mutual Fund Transmission Process Simplified, SEBI Eases Claim Settlement for Families of Deceased Investors
Moneylife Digital Team 20 July 2026
Market regulator Securities and Exchange Board of India (SEBI) has simplified the process for transmission of mutual fund units and proceeds following the death of a unit-holder by directing the Association of Mutual Funds in India (AMFI) to ease documentation and operational requirements. The revised standards aim to remove common hurdles faced by nominees and legal heirs, making the claims process faster, more uniform, and investor-friendly while safeguarding investors' interests. 
 
In a release, SEBI said the changes are part of its ongoing investor-friendly initiatives to facilitate the transmission of mutual fund investments. Acting on the regulator's advice, AMFI has amended its standards on the ‘procedure to claim units/proceeds upon death of a unit holder’ to address operational challenges faced by the families of deceased investors and align industry practices with SEBI's investor protection objective
 
One of the key changes deals with address mismatches. Where the recorded address of the deceased investor differs from the latest available address, asset management companies (AMCs) can now rely on the updated address, provided it is supported by relevant documentary evidence. This is expected to reduce delays caused by outdated records. 
 
SEBI has also introduced a harmonised framework for resolving name and signature mismatches. In cases involving a name mismatch, claimants can submit self-certified identity documents, such as Aadhaar or a passport, to establish the correct identity of the deceased investor. 
 
For signature mismatches, registrars and share transfer agents (RTAs) and AMCs may follow appropriate procedures depending on the nature of the discrepancy. The framework has been aligned with the guidelines prescribed under SEBI's master circular for registrars to an issue and share transfer agents (RTAs) issued on 6 February 2026. 
 
To ensure that the revised norms are implemented consistently across the industry, SEBI has asked AMFI to conduct training programmes for all entities involved in the transmission process. The regulator expects the initiative to bring greater uniformity in practices followed by AMCs and other intermediaries.
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