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Stock brokers and clearing members can continue to accept investor mandates for mutual fund transactions in the name of their pooled accounts for three more months. On AMFI's request, SEBI has extended the deadline for discontinuation of pooled accounts to July 1, 2022 from April 1, 2022.
SEBI has also extended the last date for implementation of investor safeguard measures like two-factor authentication (2FA) for redemptions.
"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 01, 2022," SEBI said.
Last year in October, SEBI issued a circular asking stock brokers to do away with the practice of using pooled accounts from April 1, 2022. Last week, the regulator clarified that existing SIPs through pooled accounts can continue provided the money is routed directly to the account of respective mutual funds.
