The Securities and Exchange Board of India (SEBI) has extended the deadline for discontinuing pooling of accounts by three months to July 1, 2022. The earlier deadline to stop this 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.
Likewise, mutual fund units too 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 deadline will help facilitate efficient technology overhaul and its smooth transition to serve growing investor needs, a statement by Association of Mutual Funds in India (AMFI) said.
The association said that it had requested SEBI to extend the deadline to allow greater time for the transition and help investors with the change in the system.
Similarly, mutual fund units are also 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.
