Mumbai: Sebi has barred mutual fund distributors, investment advisers, online platforms from pooling of funds or units for MF transactions from April 1. Sebi said it observed that based on bilateral understanding with AMCs, a few platforms pool the client’s funds into a nodal account and subsequently transfer to fund houses either on per transaction basis or lump sum basis. Sebi said fund houses can execute transactions either financial or non-financial only 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 subscription, funds should be credited directly from the investors’ account into the mutual fund scheme account without any intermediate pooling.
Likewise, units should also be directly credited into the investors account without any intermediate pooling. For redemption, funds should be directly credited to investors’ bank account from the mutual fund scheme, the regulator said.
Distributors and investment advisers facilitating transactions cannot accept payment through one-time mandate or instruments in their name. Also, cheque payments from investor should be in favour of the respective mutual fund scheme only.