SEBI Extends Account Pooling Schedule to July 1 at Mutual Fund Industry Request

Capital markets regulator Sebi has agreed to a request from mutual fund industry body AMFI to extend the deadline until July 1 for the implementation of the account pooling shutdown.

In addition, the mutual fund industry has agreed to suspend the launch of new fund offerings (NFOs) during this period, the Association of Mutual Funds India (AMFI) said in a statement.

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Previously, the MF industry was required to implement the rule from April 1.

The extension of the deadline is intended to facilitate an effective technological revamp and its smooth transition to meet the growing needs of investors.

The pooling of investors’ funds and shares by securities dealers and clearing members in any form/manner and by mutual fund investment advisers or distributors (wherever it takes place) for mutual fund transactions was to be discontinued as of April 1, 2022.

However, after mutual discussion and agreement, Sebi has granted the mutual fund industry extended deadlines until July 1, 2022, to enable the industry to bring a high level of operational efficiency in the interest investors and the efficient operation of mutual fund subscriptions and redemptions. .

NS Venkatesh, Managing Director of AMFI, said: “To remain focused on its effective and efficient implementation of the said Sebi Circular of October 4, 2021, we as the mutual fund industry have agreed to suspend NFO launches during this period. We are confident that NFO will soon be back on track.”

“We are confident of faster implementation through the adoption of new era technology and with the help of other stakeholders such as exchanges and distribution partners, so that we can further strengthen the service to investors and their evolving savings needs towards new mutual fund solutions,” AMFI Chairman A Balasubramanian said.

In October 2021, Sebi had stated that securities dealers and clearing members should not accept payment through single mandates or the issuance of mandates or instruments in their name for mutual fund transactions. .

Dolores W. Simon