SEBI extends pooling of accounts deadline to July 1, 2022

SEBI has extended the deadline for discontinuing pooling of accounts by three months to July 1, 2022. The previous deadline to stop the exercise was April 1, 2022.

Stoppage of pooling of accounts will make sure that funds used for purchasing a mutual fund by an investor will directly go to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) clearing corporation’s account, and not to the stock broker’s account.

Similarly, mutual fund units also are supposed to be directly credited to the investor’s account (in cases where this is not happening currently) once the SEBI-initiated move comes into effect.

The extension of the deadline will help in facilitating efficient technology overhaul and its smooth transition to serve growing investor needs, a statement by Association of Mutual Funds in India (AMFI) said.