New SEBI and UPI Rules Revamp Investments and Payments
Today marks the implementation of new regulations by the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (IRDAI) that are set to revolutionize the landscape of investments and payments for citizens across the country. These changes are designed to enhance transparency, minimize unclaimed assets, and improve the overall financial security of investors and policyholders and their families.
SEBI’s Reforms for Mutual Funds and Demat Accounts
SEBI’s recent guidelines bring about a series of key changes that will impact investors in mutual funds and demat accounts. Investors will now be required to update their nomination details, providing personal identifiers such as PAN, driving license, or Aadhaar’s last four digits, along with contact details, relationship status, and date of birth if the nominee is a minor.
One of the significant changes includes allowing investors to nominate up to 10 individuals as their nominee, while Power of Attorney holders are not permitted to make nominations. In the event of the investor’s demise, nominees have the option to either retain joint ownership or open individual accounts for the transfer of assets.
Furthermore, the process for resolving disputed claims has been revamped, with investors now required to handle such matters privately without SEBI’s intervention. Additionally, investors can now opt-out of the nomination process through OTP-based online verification or a video-recorded declaration.
Another notable feature of the new rules is the provision for incapacitated investors to authorize a nominee to operate their accounts with specific withdrawal limits and mandate changes. To ensure the validity of such authorizations, a regulated entity official will personally visit incapacitated investors to verify their ability to contract.
Overall, these reforms aim to simplify asset transfers, decrease legal disputes, and enhance financial security for investors and their families, thus making the investment process more efficient and secure for all parties involved.
IRDAI’s Introduction of the ‘Blocked Amount’ Feature for UPI Payments
In a significant move aimed at policyholders, the IRDAI has introduced a new feature within UPI payments that will impact the way insurance premium payments are handled. Under the Bima-ASBA (Applications Supported by Blocked Amount) facility, policyholders now have the option to block their insurance premium amount in their bank accounts until the insurer accepts the policy proposal.
This new feature ensures that policyholders’ funds remain secure until their insurance policy is officially approved, preventing unauthorized deductions and instilling greater trust in digital insurance payments. If the insurer rejects the proposal, the blocked funds will be automatically released back to the policyholder’s account, providing an added layer of security and peace of mind for policyholders.
As these regulatory changes come into effect, investors and policyholders alike can expect a more streamlined and secure process when it comes to managing their investments and insurance payments. By staying informed and updated on these new rules, individuals can navigate the financial landscape with confidence and peace of mind, knowing that their assets and payments are protected and handled with the utmost care and security.