Markets regulator SEBI has allowed AMCs to use pool accounts for transactions executed at the mutual fund level, provided they maintain proper segregation of assets and liabilities of each scheme.
The regulator said the change was brought after receiving inputs from the industry, which was of the view that it's better if certain transactions are executed at the mutual fund level instead scheme level.
"Representations were received from the industry highlighting the instances where pool accounts are used, as certain transactions are carried out only at mutual fund level for operational ease and due to certain regulatory requirements," SEBI said in a circular issued on Friday.
However, mutual funds cannot maintain a balance in the pool account. According to the circular, mutual funds will have to transfer all the balance to the accounts of respective schemes before the end of the day.
"The pool accounts for both securities and funds should have nil balance at end of the day," the circular stated.
Mutual funds can take an extra day in case they face any issue.
Implementation of RMF and dual benchmark regulations postponed
SEBI has extended the implementation date of two recent circulars on the request of AMFI.
SEBI said the risk management framework, which was issued on September 27, 2021 and was to come into effect from January 1, 2021, will now be effective from April 1, 2022.
The regulations to bring two-tiered benchmark structure for mutual fund schemes has also received a similar extension. The implementation date has been pushed to April 1, 2022 from January 1, 2022.
