AMFI Circular on Standardization of Procedures

AMFI circular on standardization of procedures for minor, guardian, nomination and transmission of Units

Standardization of procedure for Minor, Guardian, Nomination and Transmission of Units.

The AMFI Best Practice Guideline dated 28 January, 2011 has recommended a standardized procedure in case of investments made on behalf of minors, minors attaining majority, change in guardian, nomination facility and transmission facility.

On behalf of minor's accounts

Wherever an investment has been made on behalf of a minor, the following should be strictly followed:

Minor has to be the first and sole holder in a folio.

Guardian, being a natural (father or mother) or a court-appointed guardian, shall submit supporting documents.

Date of birth of minor and supporting documents to be mandatorily procured for opening of folio. Click here to view the supporting documents

Minor attaining majority

In case of a minor investor attaining majority, Quantum Mutual Fund will send an advance notice advising the guardian and minor to submit an application along with prescribed documents for changing status to 'major'. In case the guardian and minor fail to provide the prescribed documents by the date when the minor attains majority, Quantum Mutual Fund shall suspend all standing instructions like SIPs, SWPs, STPs etc from the date of majority and no transactions will be allowed till the documents for the change of status are received. In case of existing standing instructions like SIP, SWP and STP which are registered for a period beyond the minor's date of majority, Quantum Mutual Fund shall intimate investors that standing instructions will be executed only till the date of the minor attaining majority.

Change in guardian

In case there is a change in the guardian of the minor invested with Quantum Mutual Fund, the new guardian will have to provide various documents prior to registering, including KYC and bank attestation of his signature of a bank account where he is the registered guardian. Click here to view the supporting documents

Nomination facility

Investors can avail of the nomination facility and appoint a nominee for their investments. A request to register a nominee will be sent to investors, in case the folio has no nomination. In case of joint holders, all holders will have to sign the request for nomination/cancellation of nomination, even if the mode of holding is not 'joint'.  Nomination form cannot be signed by PoA holders and nomination will not be allowed in a folio held on behalf of a minor. Nomination will be mandatory for new folios opened by individuals especially as sole holding. New folios will not be opened for individuals as single holding without nomination.

Transmission

In case of transmission of units, investor has to submit adequate documents for transmission. Documents for  transmission are available for each situation. Click here to view the transmission annexures. Quantum Mutual Fund may seek additional documents on a case-to-case basis if amount involved in transmission is more than Rs 1 lakh.

Click here to read the detailed AMFI circular for more information on the above mentioned.