AMFI eases mutual fund transmission process: Easier address, name, and signature verification after the investor's death

Securities and Exchange Board of India (SEBI) has introduced an investor-friendly measure by simplifying the mutual fund transmission process, making it easier for nominees and legal heirs to claim mutual fund units or redemption proceeds after the death of an investor.

In a press release dated 17 July, the market regulator said it has advised the Association of Mutual Funds in India (AMFI) to revise and simplify the standards governing the “Procedure to Claim Units / Proceeds upon death of a unit holder.”

The move is intended to address operational challenges frequently faced by families during the transmission process while ensuring a smoother and more uniform experience across mutual fund houses.

The regulator said, “SEBI, as an ongoing investor-friendly initiative, has advised AMFI to further simplify the standards on 'Procedure to Claim Units / Proceeds upon death of a unit holder' to address operational challenges faced by kin of deceased investors during the transmission process for mutual funds.”

“AMFI has accordingly amended these standards,” the press release mentioned.

SEBI added that the revised framework is intended to “facilitate ease of transmission and align the practices with the regulatory objectives to safeguard investor interests.”

One of the key changes relates to cases where the address recorded in the mutual fund folio differs from the address mentioned in the supporting documents submitted by the claimant.

Earlier, such discrepancies could delay the processing of transmission requests, often requiring additional documentation or verification.

Under the revised standards, Asset Management Companies (AMCs) will now be allowed to rely on the latest available address details, provided they are backed by relevant documentary evidence.

The release states, “In cases where there is a mismatch in the recorded address of the deceased unit holder, Asset Management Companies (AMCs) may rely on the latest available address details, provided they are supported by relevant documents.”

SEBI has also introduced a harmonised approach for handling mismatches in an investor's name or signature, an issue that has often led to delays in claim processing.

Under the revised framework, AMCs may adopt procedures similar to those prescribed for Registrar and Transfer Agents (RTAs) under SEBI's Master Circular dated February 6, 2026.

In case of name mismatch, investors may submit self-certified documents such as Aadhaar, Passport, etc. In case of signature mismatch, RTAs may follow appropriate procedures based on the nature of the mismatch.

“AMFI has been advised to provide training to all relevant entities on the transmission process so that practices across AMCs are aligned with the regulatory guidelines,” the release cited.

According to AMFI, “transmission of units is a process whereby units held by a deceased unitholder are transferred either to the nominee or to the legal heirs of the deceased unitholder.”