Mumbai: Sebi has banned mutual fund distributors, investment advisers and online platforms from pooling funds or units for MF transactions from April 1. and subsequently transfer to fund houses either by transaction or on a lump sum basis. Sebi said that fund companies can only execute financial or non-financial transactions if there is a service agreement between them and the service provider.

Portfolio managers registered with Sebi have been exempted from this new rule.

For the subscription, the funds must be credited directly from the account of the investors to the account of the UCITS without any intermediate pooling.

Likewise, units should also be credited directly to the investor’s account without any intermediary pooling. For redemption, funds must be directly credited to investors’ bank account from the mutual fund system, the regulator said.

Distributors and investment advisers facilitating transactions cannot accept payment by single mandate or by instruments in their name. In addition, investor check payments must be only in favor of the respective mutual fund system.

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