Business Standard

MFs: Sebi extends deadline for compliance with certain directions to July 1

Providing more time to fund houses, Sebi extended the deadline for implementing certain directions for mutual funds, including those pertaining to usage of pool accounts for transactions, to July 1.

The move, according to industry experts, means around Rs 35,000 crore each will have to be allocated to mid- and small-cap stocks unless schemes decide to merge their multi-cap schemes with large-cap ones or convert their multi-cap schemes to another

Press Trust of India New Delhi
Providing more time to fund houses, Sebi on Thursday extended the deadline for implementing certain directions for mutual funds, including those pertaining to usage of pool accounts for transactions, to July 1.
In October 2021, Sebi had said that stock brokers and clearing members should not accept payment through one-time mandate or issuance of mandates or instruments in their name for mutual fund transactions.
Earlier this month, the regulator said one-time mandates in favour of Sebi-recognised clearing corporations could be accepted from April 1 and now, that deadline has been extended.
"On or after July 1, 2022, new mandates shall be accepted only in favour of Sebi recognised clearing corporations and those mandates shall exclusively be for subscriptions to units of mutual fund schemes and not for any other purpose," Sebi said on Thursday.
The deadline for discontinuation of usage of pool accounts for transactions in the units of mutual funds, Two Factor Authentication (2FA) for redemption and other related requirements have been extended following a representation from Association of Mutual Funds in India (AMFI).
"On examination of the representation of AMFI, in the interest of the investors, it has been decided to extend the date of applicability of 'circulars' including the clauses relating to 2FA for redemption and source account verification to July 1, 2022," the watchdog said in the circular issued on Thursday.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mar 31 2022 | 7:47 PM IST

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