.jpg)
2 hours ago
3
Jul 25, 2026, 11:36:53 AM IST
1/7
Regulations by market regulator
Markets regulator Sebi and the mutual fund industry have introduced measures to simplify the transmission process for mutual fund investments, making it easier for nominees and surviving joint holders to claim the proceeds after the death of an investor. Here is what it means for investors, as reported by ETBureau.
Getty Images
2/7
What is transmission of mutual fund units?
Transmission of mutual fund units is the process through which units held by a deceased investor are transferred to the nominee, surviving joint holder or legal heir. The process is relatively straightforward if there are joint holders or valid nominees.
Getty Images
While mutual funds broadly follow a common transmission process, there may be minor variations in documentation and formats across fund houses. Upon receiving the required documents, fund houses typically complete the transmission within 5-15 working days.
iStock
4/7
What was the need to streamline the process?
Recent reports highlighted the administrative hurdles faced by families while claiming mutual fund investments after the death of a unit holder. To make the process simpler, mutual fund industry body AMFI has introduced a few measures.
iStock
5/7
Types of mismatch and key measures
In cases of address mismatch, AMCs will rely on the latest valid documented address of the deceased investor. Sebi has also proposed a uniform framework for name and signature mismatches, allowing self-certified identity documents for name discrepancies, while RTAs will follow a standard process for signature mismatches.
ET Online
Mutual fund units are typically held either in a single name with a nominee registered or jointly with one or more investors. The transmission process depends on the pattern of holding.
In case of the death of the first holder in a joint account, the mutual fund units will be transferred to the surviving holder. For single-holder investments, the units will be transmitted to the registered nominee upon submission of required documents, including the death certificate and bank details. Nominees must complete KYC, if pending, before the transmission is processed.
ANI
7/7
Either no nominee or more than one nominee
If there are no joint holders or registered nominees, the units are transmitted to the legal heir upon submission of the prescribed legal documents required by the fund house. Where there is more than one nominee, the units are transmitted in the proportions specified by the deceased investor in the nomination form.
Agencies
English (US)