SEBI extends deadline for demat and mutual funds. But you still need to do these other things this year

Priyanka Chakrabarty

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Guwahati: You may be relieved to know that the Securities Exchange Board of India (SEBI) has extended the nomination for demat and mutual fund accounts till June, 2024. The earlier deadline was December 31, 2023.

The SEBI has issued a crucial directive for all Demat and mutual fund account holders – add a nominee or opt out. If you do not add a nominee or choise to opt out, your account could face freezing. This means investors won't be able to withdraw from mutual funds or use their demat accounts for trading. However, recently, the same date has been extended to June 2024.

To participate in stock market trading, you need two essential accounts - a Demat account for electronic shareholding and a trading account to execute buy and sell orders swiftly. Demat is basically an electronic account that holds securities like stocks and mutual funds in dematerialized form.

It allows investors to hold securities such as stocks, mutual funds, and bonds, in digital format. It is mandated by the Securities and Exchange Board of India (SEBI) for transactions of listed company securities. This account helps keep track of an investor's holdings in shares, exchange-traded funds, bonds, and mutual funds in one place.

Business North East spoke to an official of the State Bank of India's local head office for more insights on the matter. He said they have informed demat account holders to update their KYC on and before 30 December 2023. “They who have joint accounts must add details of both the members’, said the official.

As bonfires get lit and hearty meals get cooked as part of New Year celebrations, there are a few important things that you need to do before 2024 begins.

In case you have not revised your bank locker agreement, you need to do it now. You might need to sign and submit an updated locker agreement once again if you submitted a bank locker agreement on or before December 31, 2022. The last date to sign the revised locker agreement is December 31, 2023. As per new agreements, customers will agree not to use the locker for any unlawful purposes.

Also, if you haven’t used your UPI this year, better use it once before Dec 31. The National Payments Corporation of India (NPCI) has asked payment apps and banks to deactivate the UPI IDs and numbers that have not been used for more than one year. A circular in this regard was issued to all members of UPI on November 7. Therefore, if you have not made any payments using UPI this year at all, now would be the right time to do so.

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Priyanka Chakrabarty