New Delhi, March 17 -- The Securities and Exchange Board of India (SEBI) has issued a consultation paper to modify nomination norms for demat accounts and mutual fund folios, aimed at simplifying investor on-boarding and aligning processes with banking standards. Released on March 17, 2026, the proposal seeks to address operational challenges identified after the issuance of a previous circular dated January 10, 2025. The regulator has invited public comments on these suggestions until April 7, 2026.

SEBI has proposed making nomination the default choice for all single accounts or folios opened after a specified date. Under this framework, any investor who does not wish to nominate will be "specifically required to choose 'opt-out of nom...