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SEBI, the market watchdog, has introduced a new reporting mechanism for reporting deceased investors. Starting from January 1, 2024, stockbrokers and other intermediaries will be responsible for updating records after an investor's death. Upon receiving information about the investor's demise, intermediaries must verify the death certificate and PAN of the deceased within one day.

If the death certificate cannot be obtained, the intermediary will inform the nominee or legal representative that their KYC status is on-hold until the certificate is received. Once confirmed, the intermediary will block all debit and non-financial transactions from the deceased investor's accounts. Any transaction requests on accounts marked as on-hold will require due diligence, including an in-person verification or video call.

If the investor is alive, the intermediary will submit a KYC modification request. Verification of information by intermediaries or KRA is recommended. Stay updated on personal finance with the Money9 App