New SEBI and UPI rules kick in from today. Here’s how they impact your investments and payments

As March 1, 2025, a slew of regulatory and financial changes are set to impact citizens. From new SEBI guidelines reshaping mutual fund and demat account nominations to a significant UPI rule change for insurance payments, here’s what to expect.

SEBI’s new rules for MF and Demat accounts

The Securities and Exchange Board of India (SEBI) has introduced new rules to enhance transparency and minimize unclaimed assets. These changes will require existing investors to update their nomination details or opt out entirely.

Key changes:

• Investors must provide nominee details, including a personal identifier (PAN, driving license, or Aadhaar’s last four digits), contact details, relationship status, and date of birth (if minor).
• A nominee can be one of up to 10 individuals, but Power of Attorney (PoA) holders cannot make nominations.
• Upon the investor’s demise, nominees can either retain joint ownership or open individual accounts for asset transfer.
• Required documents include a self-attested death certificate, updated KYC, and creditor clearance—affidavits, notarizations, or additional declarations will no longer be required.
• Disputed claims must be resolved privately without SEBI’s involvement.
• Investors can opt out of nomination via OTP-based online verification or a video-recorded declaration.
• Incapacitated investors can authorize a nominee (excluding minors) to operate their accounts with withdrawal limits and mandate changes.
• A regulated entity official will visit incapacitated investors in person to verify their ability to contract.

These reforms aim to streamline asset transfers, reduce legal disputes, and improve financial security for investors and their families.

UPI to introduce ‘blocked amount’ feature

A major update in UPI payment rules will impact policyholders starting today. The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a one-time mandate for blocking premium payments through UPI for life and health insurance policies.

How it works:

• Under the Bima-ASBA (Applications Supported by Blocked Amount) facility, policyholders can block their insurance premium amount in their bank accounts.
• The premium amount will only be released if the insurer accepts the policy proposal.
• If the insurer rejects the proposal, the blocked funds will be released back to the policyholder’s account.

This move ensures policyholders’ funds remain secure until their insurance policy is officially approved, preventing unauthorized deductions and improving trust in digital insurance payments.