New Delhi, Aug. 8 -- The Securities and Exchange Board of India (SEBI) in May modified the norms for nomination in single-holder demat accounts and mutual fund folios, with the revised rules coming into effect from September 1. 2026.

In a circular dated May 29, 2026, Sebi said the modification will "enhance the ease of investor onboarding and ease the nomination process."

The new rule has been introduced to ensure that every investor clearly records their nomination preference, helping streamline the transfer of securities and reduce complications for family members or legal heirs after the investor's death.

Under these guidelines, investors cannot leave the nomination field blank. They either have to submit a nominee's details or a si...