New Delhi, May 29 -- The stock market regulator has rolled back key aspects of its January 2025 framework overhauling nomination rules governing demat accounts and mutual fund folios, after acknowledging in March challenges in the new system that was aimed to reduce unclaimed investor assets.

In a circular issued on Friday, the Securities and Exchange Board of India (Sebi) reverted to its previous framework. The January 2025 framework had aimed to "revise and revamp" nomination facilities across the securities market, but many of its proposals were cumbersome in practice.

The new norms included a rule to allow nominees to operate accounts of incapacitated investors, mandatory capture of extensive nominee details, video-based opt-out pro...