The Association of Mutual Funds in India (AMFI) has introduced new rules to make it easier for nominees and family members to claim mutual fund units after the death of an investor.
The updated process is aimed at reducing paperwork, solving common documentation issues, and speeding up the transmission of mutual fund units.
The new Standard Operating Procedure (SOP) is effective immediately for all AMFI member Asset Management Companies (AMCs).
Easier Process for Families
The changes come after reports highlighted the difficulties many families faced while claiming mutual fund investments. Even small mistakes in documents often delayed the process.
To reduce such problems, AMFI has updated the claim process so that minor documentation issues do not become unnecessary hurdles.
The move is intended to protect investor interests and make the claim process smoother for nominees.
New Rule for Address Mismatch
One common issue during claims is a difference in the address mentioned across various documents of the deceased investor.
Under the new guidelines, AMCs can now accept the latest available address if valid supporting documents for the updated address are provided. This will help avoid delays caused by address mismatches.
Common Rules for Name and Signature Errors
AMFI has also introduced a uniform approach for handling differences in an investor’s name or signature.
All AMCs have been advised to follow the same rules for identifying minor and major name or signature mismatches, in line with SEBI’s Master Circular dated February 6, 2026.
This will ensure that the same standards are followed across the mutual fund industry.
New Guidelines Effective Immediately
The revised SOP has already been issued to all AMFI member AMCs and is effective immediately.
To ensure smooth implementation, AMFI also plans to conduct training programs through AMCs. These sessions will help staff follow the new process consistently while complying with regulatory guidelines.
