SEBI Cancels Decision to Freeze Accounts without Nomination; Assures Secure Investment Experience with New Policy

New Delhi: The Securities Exchange Board of India (SEBI) has retracted its decision to freeze accounts in the market for non-nominated investments. The decision, which was to be enforced effective June 30, now stands canceled, offering relief to investors and beneficiaries who did not allocate a nomination. Nonetheless, the beneficiaries of unclaimed investments due to non-allocation of nominations will have their investments distributed.

Brokerages, asset management companies, among others who have benefited from unclaimed nominations, are the primary stakeholders in the SEBI decision. SEBI’s decision is based on not forcing new depositors to nominate. At the same time, new depositors must be encouraged to choose a nomination within two weeks to enhance investment proliferation.

The cancellation of the freeze on accounts without nominations marks a shift towards a more investor-friendly environment in the market. The SEBI decision has come in time with a directive for new depositors to submit both an email and a SMS to brokers and asset management companies within two weeks.