The Association of Mutual Funds in India (AMFI) has further streamlined the mutual fund transmission process to make it easier for nominees and the next of kin of deceased investors to claim mutual fund units or proceeds.
The changes, effective immediately, are aimed at reducing operational friction and addressing minor documentation discrepancies that can delay the transmission of mutual fund holdings following the death of a unit holder.
AMCs Can Rely On Latest Address Details
Under the revised procedure, Asset Management Companies (AMCs) have been advised to rely on the latest available address details of a deceased unit holder in cases where there is a mismatch in the address recorded in the mutual fund records.
The latest address, however, must be supported by relevant documents. The measure is intended to prevent minor address discrepancies from becoming a hurdle for nominees and legal claimants.
Framework For Name And Signature Mismatches
AMFI has also introduced a harmonised framework to deal with discrepancies in the name or signature of the deceased unit holder.
AMCs may adopt a framework similar to the provisions relating to minor and major mismatches in names and signatures under Annexure 10 applicable to Registrars and Transfer Agents (RTAs), as provided in the Securities and Exchange Board of India (SEBI) Master Circular dated February 6, 2026.
The move is expected to bring greater consistency in the way AMCs assess and resolve such discrepancies during the transmission process.
Revised SOP Effective Immediately
AMFI said the updated Standard Operating Procedure (SOP) has been communicated to all member AMCs and will take effect immediately.
The changes follow recent concerns over the administrative difficulties faced by grieving families while claiming investments belonging to deceased unit holders. By providing greater clarity on documentation mismatches, the revised procedure seeks to ensure that genuine claims are processed more smoothly.
Training To Support Consistent Implementation
To support the effective implementation of the revised process, AMFI plans to undertake training initiatives through AMCs.
The training programmes are expected to help ensure consistent application of the updated procedures and alignment with applicable regulatory guidelines across the mutual fund industry.