The new system, which is set to bring considerable relief to grieving families, is designed to expedite the process of transferring securities and other investments to the legal heirs or beneficiaries of deceased investors. Under the previous framework, this was a cumbersome and time-consuming procedure, often requiring multiple legal formalities and a significant amount of paperwork.
The key features of SEBI’s new verification system include the creation of a centralized database that contains the necessary information about investors and their holdings, including nominations and succession details. This database will enable a more straightforward and efficient verification process, reducing the administrative burden on grieving families during a difficult time.
Source:-zee businessFurthermore, SEBI has emphasized the importance of nominations, urging investors to designate nominees for their investments. This step can significantly expedite the transfer of assets to the rightful heirs and minimize potential disputes. The system will also provide an online portal through which investors can update their nomination details, ensuring that they remain current and accurate.
Source:- the times of India
SEBI’s introduction of this streamlined verification system aligns with its broader mission of promoting investor-friendly practices and reducing friction within India’s financial markets. By simplifying the process of transferring investments in case of investor death, SEBI aims to provide much-needed support to investors’ families during emotionally challenging times and enhance overall trust and confidence in the Indian securities market.
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