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Request for online redemptions will not go through for your clients unless they verify their mobile number and email id registered in their folios, according to industry officials. This is because the RTAs and AMCs cannot do two-factor authentication unless they are sure that the phone number and email id belongs to the investor or his/her family members or guardian.
In case of non-verification, redemptions will only be possible through the physical mode. However, fresh investments or ongoing SIPs will not be effected.
AMCs, RTAs and transaction platforms have been making concerted efforts to ensure verification of mobile and email ids of each investor. However, they are taking different routes to do so. While some AMCs have been sending communication to investors, transaction platforms like MFU, BSE Star and NSE NMF have started confirming that the number and email being registered belongs to investor/family or guardian only.
In addition, MFU has developed an online process which allows investors to verify their mobile number and email id of all folios at one go.
The two-factor authentication came into effect from this month. The new process mandates AMCs to authenticate redemption requests by sending an OTP to the mobile number or email id of investors. The first factor authentication is logging into the MF investment account itself.
AMFI had issued very clear guidelines in this regards. You can read this article for more details.
