Claiming a Dead Relative's MF? SEBI Made It Easier

SEBI has told AMFI to simplify how families claim mutual fund units after an investor dies. Whether you are a nominee or a legal heir, the paperwork and process just got less painful. Here is what changed and what you must do now.

Here's what happened: SEBI directed AMFI to overhaul mutual fund transmission norms, reducing paperwork burden for nominees and legal heirs claiming folios after an investor's death.. Under the revised framework, nominees can claim units with simpler self-declaration and basic KYC documents instead of lengthy legal proofs in many cases.. For higher-value folios, legal heirs without a registered nominee may still need succession documents, but thresholds and document lists have been standardised across all fund houses..

What you should do: Log in to your MF platform (Zerodha, Groww, CAMS, KFintech) today and verify that a nominee is registered on every folio — unregistered folios cause the most delays.. If you are a legal heir trying to claim a deceased person's funds, gather the death certificate, your KYC documents, and a cancelled cheque first — these are universally required regardless of folio value.. Review your own nomination annually: if your nominee has died or your relationship has changed (divorce, remarriage), update the nomination immediately to avoid family disputes later..

Pro tip: Registering a nominee does NOT transfer ownership — it only speeds up claim processing. A legal heir can still challenge it, so always back your nomination with a registered Will for large folios.