Sebi defers timeline to implement third phase of nomination framework for securities market

Markets regulator Sebi deferred the implementation of the third phase of its nomination framework for the securities market, which was earlier scheduled to take effect on December 15. The new implementation date will be announced later, the Securities and Exchange Board of India (Sebi) said in its circular. The deferment comes in response to operational challenges faced by depositories and other stakeholders.

In January, Sebi issued guidelines to revamp the nomination process for mutual fund folios and demat accounts to enhance transparency and minimise unclaimed assets in the securities market. Following representations from various industry bodies, the regulator decided to adopt a phased implementation approach through a subsequent circular in February 2025.

However, depositories, depository participants, and industry bodies have again expressed operational challenges and requested more time to update their systems and processes. “In view of the foregoing, it has been decided to defer the timeline for implementing the aforesaid circular from December 15, 2025, to a further date to be notified separately,” Sebi said.