Description

NSE defers the implementation of Phase III of SEBI's revised nomination facilities from December 15, 2025 to a further date to be notified separately, following SEBI circular dated December 11, 2025.

Summary

NSE has deferred the implementation of revised nomination facilities on the NSE MF Invest Platform from December 15, 2025 to a further date to be notified separately. This follows SEBI circular HO/42/36/12(4)2025-OIAE-IAD3 dated December 11, 2025, which postponed Phase III implementation due to operational difficulties and structural implications raised by depositories, depository participants, and industry associations.

Key Points

  • Implementation of revised nomination facilities originally scheduled for December 15, 2025 is deferred indefinitely
  • Deferment applies to SEBI circular dated January 10, 2025 on “Revise and Revamp Nomination Facilities in the Indian Securities Market”
  • Previous NSE circulars affected: NSE/NMFTM/71461 (November 25, 2025), NSE/NMFTM/71524 (November 28, 2025), and NSE/NMFTM/71746 (December 10, 2025)
  • New implementation date will be notified separately by SEBI
  • All other provisions in SEBI circulars dated January 10, 2025, February 28, 2025, and July 30, 2025 remain unchanged

Regulatory Changes

SEBI’s original circular aimed to revise and revamp nomination facilities across the Indian securities market. The implementation was planned in three phases:

  • Phase I: Originally March 01, 2025
  • Phase II: Deferred to June 01, 2025, then further to August 08, 2025
  • Phase III: Deferred to September 01, 2025, then to December 15, 2025, and now indefinitely postponed

The deferment decision was made after SEBI received representations from stakeholders requesting re-examination of structural implications and additional time for system developments and process changes.

Compliance Requirements

  • Asset Management Companies (AMCs): Continue following existing nomination procedures until new implementation date is announced
  • Registrars and Transfer Agents (RTAs): No immediate changes required; await further notification
  • Depositories and Depository Participants: System development and process changes timeline extended
  • NSE Members: Monitor for future circular announcing revised implementation date

Important Dates

  • December 11, 2025: SEBI issued deferment circular HO/42/36/12(4)2025-OIAE-IAD3
  • December 15, 2025: Originally scheduled Phase III implementation date (now deferred)
  • To be notified: New implementation date for revised nomination facilities

Impact Assessment

Operational Impact: The deferment provides relief to mutual fund industry participants including AMCs, RTAs, depositories, and depository participants who expressed operational difficulties in meeting the December 15, 2025 deadline. This allows additional time for necessary system developments and process changes.

Market Impact: Minimal immediate market impact as this is an administrative compliance matter. Existing nomination procedures remain in effect.

Investor Impact: No immediate impact on investors. Current nomination facilities continue to operate under existing framework until revised system is implemented.

Industry Impact: Positive for industry stakeholders who requested additional time to address structural implications and complete technical implementations without rushing system changes that could lead to operational errors.

Impact Justification

Administrative deferment affecting mutual fund nomination processes but does not impact immediate trading or market operations. Provides relief to stakeholders for system development and process changes.