On Friday, market regulator Sebi delayed the implementation of rules related to mutual fund holder nominations until October 1.

The rule, which requires investors who subscribe to mutual fund units to submit nomination or withdrawal details, will take effect on August 1.

Investors who subscribed for mutual fund units from October 1 will now have the option to offer nominations or opt-out of nominations, the Securities and Exchange Board of India (Sebi) said in a notice.

Asset Management Companies (AMCs) must offer unitholders the option to submit a nomination form in person or online or to opt-out of a nomination return at the option of the unitholder.

In the case of the physical option, the form will have the wet signatures of all unitholders or, if online; an electronic signature tool will be used in place of the wet signatures of all unitholders. Additionally, the asset manager will verify the form through two-factor authentication, one of which is to send a one-time password (OTP) to the registered email or phone number of the relevant unitholder.

The move aims to adjust the practice of all components of the securities market. Last year, Sebi offered similar options for investors opening new trading and Demat accounts. Separately, Sebi issued an operational notice to effectively regulate the corporate bond market and enable issuers and other stakeholders to access all applicable rules in one place.

Operating Notice Continuous Disclosure Requirements for Issuers of Listed Non-Convertible Securities, Securitised Debt Instruments, and Commercial Paper.

The latest circular is a compilation of the existing relevant circulars and has been amended accordingly. The requirements of these circulars are detailed chapter by chapter in the commercial circulars. Also included is a form in which the listed entity submits a statement to the stock exchange explaining the use of proceeds from the offering of the listed non-convertible securities.

In addition, the regulator also published the format for reviewing the ratings of non-convertible securities obtained by listed entities from credit rating agencies and the format of interest, dividends and principals submitted by listed entities to stock exchanges.