Why do some mutual funds insist on nominee's signature?

#1
I fail to understand the logic behind some mutual funds insisting on nominee's signature in the form.:confused:

I can understand if they insist on the nominee's photograph or their A/C no or identity proof but I don't understand why some of them insist on the nominee's signature.
 
#2
well, it seems I am the only one facing this problem here.

Let me elaborate a bit.I wish to nominate someone who is an NRI.I find that you can make an NRI a nominee but there are some conditions attached to it.The AMC's have not mentioned in details about it in their forms.Can someone in the know of it specify the conditions in detail ?
 

2021

Active Member
#3
I fail to understand the logic
The logic is pretty simple. Nominee is person whom transfer of power to transact for a sort specified like bank a/c, shares, mf, business etc is given. Now logic part. NRI can invest in shares/mutual funds after RBI permits under FEMA under NRE/NRO accounts. NRE funds can be taken back directly in own currency to place person is living say USA in US $ but NRO funds have to be converted into rupees in India and than should be transfered via correct route to say USA. Thus a nominee has to give sign papers including Indian origin witnesses. It's solely RBI discretion to allow nominee thereafter or not. Though it is dealt as same way as any Indian nominee is treated. So don't worry. Just understand the logic on your part too, transfering of funds will take place once the Indian fund starting body gives up.
 
#4
hello everybody I am new here

hey everybody I am noob here

I have just found this forum from researching several keywords for my school project. I just wanted to say hello to everyone. Thanks!
 

2021

Active Member
#7
Aren't you confusing this with 'power of attorney' ?
I'm not confusing it with anything. Transfers of power as in transfer of dealing power of the funds/shares to nominee only after a/c holders death while POA allows you to appoint a person or organization to handle your affairs while you're unavailable or unable to do so but you are alive. Instead of writing technical legal words I wrote a simple language so it is easy to understand. :)
 
#8
Transfers of power as in transfer of dealing power of the funds/shares to nominee only after a/c holders death
That's exactly what POA is "transfer of dealing power" whereas in case of nominee it's transfer of ownership after A/C holder's death.

You need the POA's signature since he will be signing & handling your regular affairs on your behalf whereas in case of transfer to nominee you don't need to have his signature beforehand.
 

Similar threads