The updated procedure takes effect immediately and has been shared with all asset management companies (AMCs), AMFI said on Friday (July 17).
The move comes after reports highlighted that families of deceased investors often faced delays in claiming mutual fund units or redemption proceeds because of minor discrepancies in documents, such as differences in addresses, names or signatures.
What has changed?
AMFI has introduced two key changes to make the transmission process smoother.
Address mismatch
If the address recorded in the mutual fund folio differs from the address mentioned in supporting documents submitted by the claimant, AMCs have been advised to rely on the latest available address, provided it is backed by valid documentary proof.
The change is intended to prevent claims from being delayed solely because of outdated address records.
Name and signature mismatch
For discrepancies in the investor’s name or signature, AMFI has allowed AMCs to adopt a framework similar to the one prescribed by the Securities and Exchange Board of India (SEBI) for registrar and transfer agents (RTAs).
Under this approach, AMCs can distinguish between minor and major mismatches while processing claims instead of treating every discrepancy as a ground for rejection.
Why has AMFI made these changes?
According to AMFI, the revised guidelines are intended to remove operational friction and make it easier for nominees of deceased investors to claim mutual fund units or redemption proceeds.
The changes are also aimed at aligning industry practices with regulatory efforts to strengthen investor protection and reduce procedural hurdles during the transmission process.
When do the new rules take effect?
The revised SOP has come into effect immediately. AMFI said it has communicated the updated guidelines to all member AMCs.
The industry body also plans to conduct training programmes through AMCs to help ensure consistent implementation of the revised procedures across the mutual fund industry.
What is transmission in mutual funds?
Transmission is the process of transferring mutual fund units or the redemption proceeds to the nominee or legal heir after the death of a unit holder. Depending on whether a nominee is registered and the value of the investment, claimants may be required to submit documents such as a death certificate, identity proof and other supporting records.
The latest changes are expected to reduce delays arising from minor documentation mismatches during this process while leaving the broader transmission requirements unchanged.
