Mutual Fund Nomination 2026: New SEBI Rules, Nominee Forms (CAMS and KFintech) and How Families Claim

By Binod Kumar Shukla, AMFI-Registered Mutual Fund Distributor (ARN-50844) · Published 26 October 2026

Some conversations in my office are harder than others. A widow comes in with a bundle of old statements, three folios and no idea who the nominee was. Another family discovers a folio years after a parent passed away. In both cases, the paperwork would have taken a few minutes while the investor was alive. Nomination is among the quickest and cheapest pieces of family preparedness in mutual fund investing, and also among the most postponed.

What a nominee is, and what a nominee is not

Nomination tells the fund house to whom the units should be transmitted after the holder's death, so the family often avoids a long legal-heirship process. It is a transmission-facilitation arrangement. It does not replace a will, and who finally owns the money can still be governed by the will, succession law and family arrangements. If your wishes differ from your nominee list, take a lawyer's guidance and align both documents. I am a mutual fund distributor, not a lawyer; this is general education only.

The 2026 nomination rules in plain words

The circular is titled "Modified Norms for Nomination in Demat Accounts and Mutual Fund Folios" (SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2026/12676, dated 29 May 2026, effective 1 September 2026; I read the circular text as published on a fund house website and cross-checked it with press summaries on 26 Oct 2026). Key points:

The opt-out declaration itself notes that a nomination eases transfer after death, that heirs may need extra legal documents without it, and that holdings left unclaimed for long may be transferred to the Investor Education and Protection Fund. Circular details and form formats change, so always use the latest form and confirm with the fund house or registrar.

Nomination form download and online options

Mutual fund units are serviced by registrars such as CAMS and KFintech. Where you submit depends on who services your folio. The easiest check is the registrar named on your statement. The first row links to copies hosted on this site; other links open third-party sites that we do not control. Form versions change, so check that you are using the latest one.

Worked examples (hypothetical)

Suppose a folio is worth Rs 15,00,000 on the claim date (illustrative only; actual value depends on NAV then).

Each nominee then decides whether to hold, redeem or switch their portion, subject to market risk, exit load and tax at that time. Equal splitting is convenient, but if you want unequal shares, state them clearly.

Joint holders, minors and NRIs

Joint holders

Nomination is optional for joint folios, but when you do make or change one, every joint holder must consent. Keep all holders' mobile numbers and emails current, since consent and acknowledgements go there. The nominee generally becomes relevant when the holder(s) are no longer alive, as per the holding pattern.

Minors

A minor can be named a nominee; their date of birth is mandatory and guardian details can be added. For a folio held by a minor, the guardian operates it, and on turning 18 the child should complete their own KYC and make a fresh nomination.

NRIs

NRI folios follow the same idea with additional KYC and FATCA/CRS details. See our NRI investment page, and speak to your tax professional about residency-related tax points.

How a claim actually works

1. The family informs the fund house or registrar and requests transmission.
2. The nominee submits the claim form, a death certificate, their own KYC and bank proof.
3. For larger values or where no valid nomination exists, extra documents such as legal-heir proof or an indemnity may be asked for.
4. Units are transmitted to the nominee's folio or redeemed, depending on the nominee's choice and the fund house's process.

Thresholds and timelines vary by fund house and change over time. Ask for the current checklist.

Forgotten folios and unclaimed money

SEBI launched MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) on 12 February 2025 so investors can search for inactive or unclaimed folios. A folio is treated as inactive after ten years without any investor-initiated transaction, financial or non-financial, while units are still held. It is a lawful starting point if you suspect a relative invested. Our guide to mutual fund KYC for individuals and non-individuals covers the other half of folio hygiene, because a folio with an unvalidated KYC or an old mobile number can be hard to operate or claim.

Mistakes I see again and again

1. No nominee at all, because "everyone knows who gets it".
2. Quoting old rules such as 10 nominees.
3. Stated shares that do not add up to 100%.
4. Nominating someone who has passed away or whose relationship has changed, and never updating.
5. Joint holders unaware of the consent rule, so the form stalls.
6. Treating nomination as a will.
7. Not telling the family that folios exist, which registrar serves them and where statements go.

Nomination checklist

• List every folio and demat account, including old ones, and note the registrar for each.
• Check KYC status (see our KYC and CKYC page).
• Add or update up to 3 nominees; state shares if you want them unequal.
• For joint folios, get every holder's consent.
• Keep the acknowledgement of each nomination.
• Tell your family where the list is kept.
• Review after marriage, birth, death, divorce or a major financial change, and align with your will.
• Look at the whole picture in a financial health check or through our portfolio services.

Who should talk to us

Families with many old folios across fund houses, NRIs managing paperwork from abroad, joint holders who disagree on nominees, and anyone starting a new SIP (see also the SIP form and mutual fund services) often find a short sit-down useful. For tax questions on redemption or transmission, consult a Chartered Accountant and see tax planning. Local readers can reach us through our Ghaziabad and Delhi pages.

A distributor earns commission from regular plans, which pays for servicing such as nomination updates and registrar follow-up. Direct plans exist and do not carry commission.

Frequently asked questions

1. How many nominees can I add in a mutual fund folio?

Under SEBI's circular dated 29 May 2026, effective 1 September 2026, you can name up to 3 nominees per folio. Earlier press reports of 10 nominees relate to a framework that the 2026 circular supersedes.

2. Is nomination compulsory?

For single-holder folios opened on or after 1 September 2026, you must either nominate or file an opt-out declaration. For joint folios it is optional. The rules also apply to existing folios, and registrars send reminders to investors without a nominee.

3. Where can I download the nomination form for CAMS and KFintech folios?

CAMS lists a nominee registration and cancellation page and a service-request forms page on its website. KFintech offers an online nominee updation page for individual investors on non-demat folios and asks other investors to submit its signed opt-in or opt-out service request form at an investor service centre. Always use the latest version.

4. Do joint holders need to agree to a nominee?

Yes. All joint holders must consent to adding or changing a nominee, whatever the mode of operation.

5. What happens if I don't state each nominee's share?

The holding is split equally among the nominees, and any odd lot goes to the first-named nominee, as per the circular. State percentages if you want unequal shares.

6. Does a nominee become the legal owner of the units?

Not necessarily. Nomination eases transmission, but ownership questions can still be governed by the will and succession law. Take legal guidance if your wishes differ from the nominee list.

7. How can I trace a relative's forgotten mutual fund folios?

Start with the person's PAN and old statements or emails, and consider SEBI's MITRA platform for inactive or unclaimed folios. Your distributor or a lawyer can help with documents.