Description
SEBI extends Phase II nomination implementation to August 8, 2025 and Phase III to December 15, 2025 due to operational difficulties.
Summary
SEBI has extended the implementation timeline for Phase II and Phase III of the Nomination Circular originally issued on January 10, 2025. Phase II implementation has been deferred from June 1, 2025 to August 8, 2025, while Phase III has been extended from September 1, 2025 to December 15, 2025.
Key Points
- Phase II implementation extended to August 8, 2025 (originally June 1, 2025)
- Phase III implementation deferred to December 15, 2025 (originally September 1, 2025)
- Extensions granted due to operational difficulties in system development and process changes
- All other provisions of the January 10, 2025 and February 28, 2025 circulars remain unchanged
Regulatory Changes
No changes to the substantive requirements of the Nomination Circular. Only implementation timelines have been modified to provide additional time for system development and testing.
Compliance Requirements
- AMCs of Mutual Funds and their RTAs must prepare for Phase II implementation by August 8, 2025
- Depositories and Depository Participants must complete system developments for Phase III by December 15, 2025
- All entities must continue compliance with Phase I provisions already in effect
Important Dates
- August 8, 2025: New deadline for Phase II implementation
- December 15, 2025: New deadline for Phase III implementation
- All other timelines from original circulars remain unchanged
Impact Assessment
The extension provides operational relief to depositories (CDSL, NSDL), depository participants, and industry associations (ANMI, CPAI) who requested additional time for system development and testing. This measured approach reduces implementation risk while maintaining the regulatory framework’s integrity.
Impact Justification
Affects operational timelines for AMCs, RTAs, and depositories but provides relief through extended deadlines